Attacks on Russian and Saudi refineries tighten diesel supply ahead of peak demand, pushing European refining margins to record highs.
Diesel prices climbed sharply after Ukrainian strikes on a Russian refinery and Houthi attacks on a Saudi facility disrupted global fuel supply. European refining margins surged 10% from already elevated levels, reflecting deepening supply constraints as peak demand season approaches.
Refining margins had reached all-time highs due to supply tightening caused by the war, with the latest attacks exacerbating the imbalance. The disruptions come as refiners worldwide struggle to meet demand, further straining an already fragile market.
The supply crunch is expected to persist, with analysts warning of continued volatility in diesel and broader fuel markets.