August 18, 2026
Reuters: US Diesel Crack Surpasses $100 a Barrel for the First Time on Supply Disruptions
WSJ: Diesel Buyers Compete for Shrinking Supply Pool
Figure 1 shows trends in the US Strategic Petroleum Reserve (SPR) by crude quality since 2018. It illustrates the Biden-era withdrawals, the subsequent rebuild, and then the Trump administration’s withdrawals. So far, the Trump administration has withdrawn around 122 million barrels. That leaves about 50 million barrels still to be released to reach the planned total of 172 million barrels.
The US diesel crack has surged to a record $102.20 a barrel as disruptions from the Iran and Ukraine wars collide with peak seasonal fuel demand, while global refinery throughput has fallen sharply amid Middle Eastern shipping constraints through the Strait of Hormuz and Russia’s export restrictions following Ukrainian attacks on its refineries. Diesel buyers worldwide are competing fiercely for the shrinking supply pool, with the US emerging as the key export hub; this has drawn down American inventories to their lowest seasonal level since 1996 despite higher domestic production driven by strong overseas demand. European diesel prices have roughly doubled year-over-year, and crack spreads have approached record highs, intensifying the scramble into winter, and further US pressure on Iranian oil exports could worsen the global shortage, particularly if it reduces Chinese refining activity.
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