Diesel-crude oil spread tops 100 dollars a barrel

The gap between diesel and crude oil prices, known as the crack spread, reached 104.08 dollars in southern Europe on 3 September, taking the market price of diesel in the region to 198.73 dollars a barrel. The widening spread reflects the embargo on diesel exports imposed by the Russian government to cope with a domestic diesel shortage, itself the result of Ukrainian strikes on Russian refineries, as well as low United States inventories and falling exports from Asian countries. Analysts estimate the market is short of 1.3 to 1.4 million barrels of diesel, the equivalent of 15 to 20 percent of diesel demand. While statements by Donald Trump have at times pushed crude oil prices lower, the impact on refined product prices has been very limited.