Crude oil prices remained near their lowest levels in more than two weeks on Wednesday as improving Gulf supply weighed on the market. Reuters reported Brent crude at about $99.62 a barrel, while U.S. West Texas Intermediate was around $90.08 a barrel.
The refined-fuel market told a very different story. The premium for European low-sulphur gasoil over Brent crude rose to roughly $95 a barrel, a record level. The spread, commonly used as a measure of diesel refining margins, reflects the sharp value of turning crude into middle distillates when supply is tight.
Diesel availability has been constrained by disruption to refining and fuel exports in the Middle East and Russia. Debate in the United States over possible restrictions on diesel exports has added another layer of uncertainty because Europe has become more dependent on U.S. diesel and jet-fuel supplies following disruptions elsewhere.
The divergence between softer crude prices and record diesel margins shows that the energy problem is no longer only about access to crude oil. Refining capacity and the availability of finished fuels are increasingly important constraints even as raw crude supply conditions improve.