European Diesel Hits $170 a Barrel as Brent at $90 Masks Product Shortage

1 articles · Updated · OilPrice.com · Aug 18

$170 European diesel, nearly double Brent’s $90.94, is signaling the real energy shock in refined fuels rather than in crude, Jeff Currie said.
100 million to 120 million barrels of crude trapped in the Strait of Hormuz and China’s refinery run cuts kept crude relatively soft while tightening diesel, gasoline and jet fuel supplies.
Gasoline prices are already about 30% above a year ago and diesel is up 46%, raising trucking, shipping and industrial costs more directly than headline crude prices suggest.
Currie expects the gap to narrow as refiners chase unusually high margins and raise runs, but warned current Brent prices are giving investors a misleadingly calm view of consumer energy costs.