European diesel margins hit record on supply disruptions

European diesel margins hit a record high on Tuesday due to ongoing supply disruptions originating from the Middle East and Russia, according to Investing.com. Low-sulfur gasoil futures saw a $76.08 premium per barrel over Brent crude futures at 1627 GMT, marking a $2.69 increase from the previous trading close. The margin soared to $76.42 earlier in the session, setting a new record.

The supply crunch is a result of persistent disruptions to Middle East exports and Russian refinery operations. China's refined oil product exports experienced a 12.9% decline year-on-year in July, but they grew by 6.7% compared to June, as per customs data released on Tuesday. The relaxation of export restrictions enabled Chinese refiners to increase overseas shipping of fuel.

Chinese diesel exports surged 88% month-on-month to 810,000 metric tons in July, returning to levels observed in July of the previous year. This figure represents about 50% above the monthly average from the prior year. The U.S. diesel crack spread, indicating refining profitability, hit a record high of $102.20 per barrel on Monday. Global supply disturbances from conflicts in Iran and Ukraine coincided with the peak agricultural consumption season.