Diesel Cracks Hit Record Highs as Global Fuel Squeeze Deepens
The re-escalation in the Middle East and the Russian ban on diesel exports amid incessant Ukrainian drone attacks on refineries have pushed middle distillate cracks to record highs this week. The renewed exchange of strikes in and around the Strait of Hormuz has erased hopes of a swift recovery of o
Source: OilPrice.com
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DW NOTE
The Strait of Hormuz has been effectively closed for 186 days, blocking 21 million barrels per day of oil exports, yet diesel cracks are only now hitting records. That tells you the real chokepoint isn't crude supply — it's refining capacity. China shut five independent refineries in Q2 alone, and Europe lost 400,000 barrels per day of distillate capacity when Heide went offline in March.