Why Is Diesel Trading More Than $100 Above Crude? | Presented by CME Group
Speakers
Summary
The video explains the record diesel crack spread, which hit $106 per barrel in early September versus a typical $15-$40 range. It attributes the move to a refined product shortage rather than a crude oil shortage. Because diesel is central to moving and producing goods, elevated diesel costs can act as a broad tax and feed into consumer prices.
- Diesel crack spread reached a record $106 per barrel in early September.
- Typical diesel crack spreads run $15 to $40 per barrel.
- The blowout reflects a refined product shortage rather than a crude shortage.
- Diesel is the workhorse fuel of the physical economy.
- Higher diesel costs act like a broad tax on moving and producing goods.
- Diesel's inflation impact is slower to emerge but reaches broad consumer prices.
Ideas
Refined product shortage keeps diesel spreads elevated.
The diesel crack spread reached a record $106 per barrel in early September versus a typical $15-$40 range. The extreme level is being driven by a refined product shortage rather than a simple crude shortage. Because diesel is the workhorse fuel of the physical economy, elevated diesel costs act like a broad tax on moving and producing goods and reach a broader share of consumer prices.
Up Next
This Bloomberg Markets video, published September 08, 2026, features Narrator discussing Diesel crack spread. 1 trade idea extracted by AI with direction and confidence scoring.
Speakers: Narrator · Tickers: Diesel crack spread