“The industrial economy either grinds to a halt, or consumers are about to be hit with the biggest energy pass-through in history.” 

Brent and WTI futures remain below $100 a barrel on Tuesday morning, partly suppressed by governments releasing strategic oil reserves into global markets. But the more serious issue is building downstream, where the Russia-Ukraine war, strikes against energy infrastructure, and continued disruptions around the Strait of Hormuz are fueling the refined-products “perfect storm” we have repeatedly warned about.

Back to diesel, the squeeze is being compounded by depleted inventories, with US diesel reserves near 23-year lows and European stockpiles approaching levels last seen during the 2022 energy crisis.

A chart we published overnight went viral after showing the front-month US diesel crack spread (the NYMEX one-month heating-oil/WTI crack spread) hit a record $102 per barrel.

https://www.zerohedge.com/energy/absolutely-unprecedented-diesel-crack-spread-hits-record-refined-products-crisis-arrives

AND

Diesel Crack Spread Explodes To Record As Wall Street Warns Of Refined-Products “Perfect Storm”

Wall Street Warns About “Perfect Storm” Diesel Crunch: 

  • Goldman’s Daan Struyven Shows Global Diesel Exports Crashing
  • Citi’s Anthony Yuen Warns: Global Diesel Inventories “Below 5YR Minimum“
  • BofA’s Francisco Blanch Warns: “Diesel’s Perfect Summer Storm” Unfolding 
  • Jefferies’ Sam Burwell Warns: Hormuz Shock “Manifesting Itself In Cracks, Not Crude” 

https://www.zerohedge.com/energy/hormuz-shock-manifesting-itself-cracks-not-crude-jefferies-says