US diesel crack spread surpasses $100 a barrel for the first time

19 August 2026

The US diesel crack spread reached an all-time high of $102.20 a barrel on August 17, as global supply disruptions from the wars in the Persian Gulf and Ukraine run into peak agricultural consumption season.

The diesel crack spread—a key measure of refining profitability—is the price difference between a barrel of crude oil and a barrel of diesel fuel refined from it. In the above chart, it is measured as the premium of US ultra-low sulfur diesel (ULSD) futures over US West Texas Intermediate (WTI) crude oil futures. The crack has hit new intraday record highs in five of the six preceding sessions and hovered around $100 per barrel yesterday (8/18), reflecting growing concerns about fuel availability as fresh attacks on Middle Eastern refineries added to existing supply disruptions.

The diesel crack spread has exploded due to a combination of a shortage or raw crude oil and a shortage of global refining capacity. Under normal conditions, with balanced oil supply and adequate inventories of middle distillate fuels, diesel crack spreads hover around $20 - $30.

Global refinery crude throughput averaged 80.9 million barrels per day (b/d) in July, down about 5 million b/d from a year ago, according to the International Energy Agency (IEA). Global diesel inventories have been under immense pressure due to the ongoing wars, as oil refineries have been the target of missile and drone attacks in the Middle East and in Russia.

Surging prices of diesel, the lifeblood of the economy, are a particular concern—farmers need the fuel to power tractors, harvesters and other equipment during the ongoing harvest season in the Northern Hemisphere and the planting season in the Southern Hemisphere. Longer-term, it could hit other sectors of the global economy, from mining, manufacturing, and heavy transportation to power generation in parts of the world.

In the United States, despite a declining trend in refining capacity, refiners have ramped up diesel production by operating refineries at near-full utilization rates. Nevertheless, stockpiles are still declining in the country due to strong export demand. US distillate fuel inventories, which include diesel and heating oil, stood at 107.1 million barrels as of August 7, the lowest for this time of year since 1996, according to data from the Energy Information Administration (EIA).

Source: Reuters