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Diesel margins top $100 a barrel to reach record high
Multiple factors have coalesced to raise prices
A diesel fuel pump on a pier in Stonington, Maine, on July 27. (Graeme Sloan/Bloomberg)
Key Takeaways:
- U.S. diesel crack spreads exceeded $100 a barrel for the first time in mid-August, reaching record highs as global fuel supplies tightened.
- Lost crude supplies from the U.S.-Iran war, export curbs tied to attacks on Russian refineries and other infrastructure disruptions boosted diesel prices worldwide.
- High refining margins are encouraging companies to delay maintenance, increasing the risk of outages that could further tighten supplies and raise fuel prices.
The margin for making diesel from crude oil in the U.S. has soared to more than $100 a barrel, setting new all-time highs as a global fuel-making crunch continues to exacerbate fuel prices.
The widely watched gauge, known as the diesel crack spread, hovered around $100 a barrel on Aug. 18 down slightly from record highs over $102 a barrel. The spread settled in triple digits for the first time on Aug. 17.
READ MORE: Diesel squeeze to worsen as winter approaches
Before this year, the measure had never risen above $89 a barrel, with the prior record set in October 2022 as the world grappled with a shortage of the fuel heading into the first winter of the Russia-Ukraine war.
Now, a near-perfect storm of factors has coalesced to raise prices once again, threatening a winter of higher heating bills and inflationary shocks. Diesel prices soared in the initial weeks of the U.S.-Iran war and have remained elevated, owing to pressure on fuel markets from lost crude oil supplies and refined products trapped behind the Strait of Hormuz.
crack spread rally time- for diesel consumers the worst retail prices still could be in the months ahead https://t.co/vbDvTOAD6d — Patrick De Haan (@GasBuddyGuy) August 17, 2026
Meanwhile, disruptions from Ukrainian drone attacks on Russian refineries prompted temporary bans on exports of the fuel from the key producer, pushing up prices globally as buyers scramble to secure alternate supplies.
U.S. diesel exports, already at record highs, are filling some of the gaps, but domestic supplies are the lowest entering the end of August since 1996. Infrastructure issues around the world — including disruptions from drone strikes in Libya and Houthi rebel attacks in Saudi Arabia — are also adding pressure to tight markets.
The outsized profits are incentivizing refiners to defer planned maintenance work, raising the risk of unplanned outages that disrupt fuel processing and send prices surging even further.
