Diesel Cracks Rally to Fresh Records as Global Fuel Squeeze Intensifies

Diesel markets are tightening to record highs as Middle East tensions and Russia’s diesel export bans, along with Ukrainian disruptions, curb supply via Hormuz. The ICE gasoil crack climbed to about $79 per barrel, US diesel cracks hover above $100, and the Sep/Nov spread shows backwardation around $80/ton, signaling tight near-term supply. With limited slack in refining capacity and ongoing demand, cracks are expected to stay elevated and volatile, underpinning stronger refiner profits per banks like Goldman Sachs.