The world has enough Crude Oil and not enough diesel
Crude Oil trades just under $91.00 after adding 1.6% on Monday. The grind has run roughly $10 from the $81.00 area in nine sessions, and not a barrel has stopped being produced in any of them.
Crude Oil prices have risen slightly to just under $91.00 after a 1.6% increase on Monday. The market has seen a $10 drop from the $81.00 level over nine sessions, with no production halt reported. Saudi Aramco's Jizan refinery, a 400,000-barrel-day facility on the Red Sea coast, faced another attack on Monday. The extent of the damage is still being assessed, and the company has not commented.
American strikes on Iranian vessels this weekend have led Tehran to consider restricting shipping in the Gulf and creating a new route through the Strait of Hormuz. In response to the situation, the average number of commodity vessels crossing the Strait of Hormuz in the past 10 days has dropped to the lowest level since May. American commercial Crude Oil inventories are currently slightly above their five-year average, while distillate stocks (which include diesel and heating fuel) are below their average, reaching the lowest seasonal level since 1951.
Gasoline, derived from the same refineries, is 17% below its record level. The New York Harbor diesel crack against the barrel reached around $107 per barrel on September 1, compared to the $60s and low $70s during the record week of June 2022. Retail diesel prices hit a record high of $5.85 per gallon on September 4. WTI Oil, a type of Crude Oil traded internationally, is a high-quality light and sweet oil sourced in the United States and distributed through the Cushing hub, serving as a benchmark for the oil market.
Global growth, political instability, wars, and sanctions can impact supply, while supply and demand drive the price of WTI Oil.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
