US Diesel Hits Record $6.31 as Global Supply Crunch Deepens

US diesel prices surged to a record national average of $6.31 per gallon this week, while gasoline in Spain marked 11 consecutive weeks of increases. The spike reflects a severe global shortage of middle distillates driven by supply disruptions in the Middle East and Russia.

Brent and WTI crude benchmarks have risen sharply, with WTI climbing roughly 19% in three weeks to top $101 per barrel. US commercial crude inventories fell by 391,000 barrels to 424.1 million barrels in the week ended September 4.

“Those measures, by and large, have already exhausted their effect and the system no longer has anywhere near the same maneuvering room it had when this all started.”

Refineries are operating at 97.8% of available capacity, leaving minimal buffer. Chevron CEO Mike Wirth warned that mechanisms to mitigate price spikes have largely exhausted their effect.

The White House is evaluating the Defense Production Act to ease regulations and boost short-term refinery investment. Analysts at Barclays note the US has become the crucial supplier of distilled products as Gulf and Russian output is cut.

Diesel fuels logistics, agriculture, construction, and critical backup power generation. Barclays analysts warn the price surge will eventually add to consumer price pressures across the economy.