Fuel Refining Margins Hit Record Highs as Markets Tighten

AI Summary

Fuel refining margins for gasoline and diesel have reached record highs due to market tightening following Middle East conflict escalation, Russia’s diesel export ban, and reduced fuel inventories. Diesel refining margins in Europe surged over $60 per barrel.

Refining margins for gasoline and diesel jumped this week to new record highs after the re-escalation in the Middle East, Russia’s ban on diesel exports, and crumbling global fuel inventories.   The surge in fuel margins and the price spread over crude prices suggest that the global fuel markets remain very tight despite the millions of barrels of crude that have managed to exit the Strait of Hormuz in recent weeks. Diesel refining margins in Europe jumped to a record high of over $60 per barrel on Wednesday after Russia announced a…