Diesel crack spreads hit a record high of $102.20 per barrel, signaling a severe diesel shortage caused by refinery disruptions and export bans, even as crude oil prices remain steady around $91 per barrel. Refining capacity issues, including strikes and export bans, have reduced diesel supply, impacting transportation and agriculture sectors heavily reliant on diesel. Refiners like Valero and Marathon are benefiting from this bottleneck with record profits, but the high margins are expected to normalize once refinery operations stabilize or geopolitical tensions ease. This diesel shortage poses risks for consumer and producer prices in the near term, making refiners with complex operations attractive cyclical investments for now.
