Geopolitical risks in the Gulf pushed Brent crude futures toward $100 a barrel overnight as Yemen's Iranian-backed Houthi rebels launched new attacks on Saudi cities and economic infrastructure.
At 7:45 a.m. ET, the US diesel crack spread remained above $101 a barrel as severe tightness across the world's refined-product markets continued, with a late-summer squeeze threatening to extend into fall and winter (twin crisis for Europe).
Notably, the global industrial economy runs on usable fuels, particularly diesel, making refinery output and product availability super critical. Persistent disruptions through the Strait of Hormuz, Russian energy export restrictions, and Ukrainian drone strikes on Russian refineries have compounded the squeeze into crisis territory, leaving fuel markets vulnerable to further supply shocks.
Vitol CEO Russell Hardy was quoted by Bloomberg earlier today as saying the refined-product market is in turmoil.
Hardy, who runs one of the world's largest energy traders, said that even as recovering tanker shipments through the Hormuz chokepoint ease pressure on crude supply, limited refining cap
