Oil News: Can WTI Extend Gains as Diesel Cracks Hit a Record $102?
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Key Points:
- The U.S. diesel crack hit a record $102.20 as refinery attacks, Russian export bans and low inventories tightened fuel supply.
- The ceasefire is over, Hormuz traffic remains in single digits and the oil market is pricing a longer supply disruption.
- U.S. distillate stocks fell to 107.1 million barrels, the lowest early-August level since 1996, despite higher refinery output.
The ceasefire is dead and nobody is replacing it. The United States will not extend the arrangement, Iran is shifting to a fully offensive military posture and tanker traffic through the Strait of Hormuz is in the single digits. The Houthis launched missiles at vessels in the Red Sea, putting both chokepoints under threat at the same time. The market stopped pricing a near-term reopening days ago. It is pricing what it costs to move every barrel around the problem.