Diesel Cracks Reach Record Highs as Middle East Tensions and Russian Export Ban Tighten Global Fuel Supply

Source Summary

Middle distillate cracks have reached record highs this week due to escalating Middle East tensions, renewed strikes around the Strait of Hormuz, Russia's diesel export ban, and Ukrainian drone attacks on refineries. These factors have eliminated expectations for a swift recovery in oil product flows from the Middle East, leaving diesel markets particularly tight. ING's commodities strategists Warren Patterson and Ewa Manthey highlighted the market tightness in their Wednesday analysis.