Diesel Profit Margins Soar to 30-Year Seasonal High as Supply Worries Grip the US
- Upcoming refinery turnaround season to tighten supply further
- Strong export demand limited summertime diesel stock building
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Diesel is fetching the highest premium to crude oil for this time of year in data going back more than 30 years.
The diesel crack spread, which represents the profit generated by turning a barrel of crude into diesel, approached $70 a barrel on Monday for the first time since June to stand at the highest for this time of year in records going back to 1986. The so-called crack spread was below $20 a barrel the same time last year. Demand is set to grow this winter with the US northeast likely burning more diesel for heating amid soaring natural gas prices.