Overview
- U.S. retail diesel reached a national average of about $6.505 per gallon on Monday, Sept. 21, driven by constrained supplies and record refining margins reported across the market.
- Shipping capacity is at a premium as a global shortage of supertankers and surging freight costs have made long‑haul crude trades uneconomical and limited arbitrage between regions.
- Strikes, Houthi attacks that damaged Saudi export infrastructure, and Russian refinery outages have cut flows through the Strait of Hormuz and other routes, creating one of the largest Gulf‑related supply shocks in recent memory.
- Industry and agency data show strategic reserve releases and commercial inventory draws have largely been used up, leaving distillate stocks low and diesel crack spreads above $100 per barrel.
- Policymakers are debating measures such as diesel export limits, a move analysts warn would worsen global shortages, and markets remain sensitive to further shipping, infrastructure, or policy shocks.