Diesel crack spread jumps to $102 a barrel over crude as U.S. retail diesel rises 56% to $5.60 a gallon
AI Market Summary
A diesel crack spread near $102 over crude signals acute refinery/product tightness rather than a crude supply issue, implying rising freight and input costs across the real economy. With US refining capacity reduced by permanent closures and limited policy buffer via a depleted SPR, the shock can transmit quickly into broader inflation and growth concerns. Near-term, this is supportive for refined products and negative for risk assets via stagflation risk.
Impact level
● High
Affected assets
NCCO1OILWTI2USD/USDT+0.56%
AI Insight · NCCO1OILWTI2USD/USDTAI Insight
▼ Bearish
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The diesel crack spread has surged to $102 a barrel, far above the January 2023 peak of $42.41. U.S. retail diesel has climbed 56% to $5.60 per gallon, lifting costs across the trucking industry that consumes more than 2.9 million barrels a day. Higher transport costs could feed into food inflation.
