Tightening global fuel inventories and Russia’s diesel export ban drive refining margins to all-time highs in Europe.
European diesel refining margins climbed to a record $60 per barrel Wednesday, fueled by Russia’s ban on diesel exports and shrinking global fuel inventories. The spike reflects persistent tightness in fuel markets despite steady crude flows through the Strait of Hormuz in recent weeks.
Prior to this week, refining margins had already risen sharply due to Middle East tensions and supply disruptions. Analysts noted that inventories remain critically low, exacerbating price pressures amid robust demand.
The surge underscores concerns over fuel shortages, particularly in Europe, where diesel is a key industrial and transportation fuel.