US diesel crack surpasses US$100 a barrel for the first time on supply disruptions

The US diesel crack, a key measure of refining profitability, hit an all-time high of US$102.20 a barrel on Monday as global supply disruptions from the wars in Iran and Ukraine run into peak agricultural consumption season.Measured as the premium ‌of US diesel futures over US West Texas Intermediate crude oil futures, the US diesel crack was trading at US$99.82 a barrel, up 2.4 per cent from Friday.The crack has hit new intraday record highs in five of the last six sessions, reflecting growing concerns about fuel availability as fresh attacks on Middle Eastern refineries added to existing supply disruptions.Global refinery crude throughput averaged 80.9 million barrels per day in July, down about 5 million bpd from a year ago, the International ⁠Energy Agency said in a monthly report last week.The most immediate hit from surging diesel cracks is to farmers who need the ‌fuel to power tractors, harvesters and other equipment, during the harvest season in the northern hemisphere and the planting season in the southern hemisphere.Longer-term, it could hit most other sectors of the global economy ‌as the fuel has wide-ranging uses from manufacturing to heavy transport and power generation in parts of the world.Global ⁠diesel stockpiles have been ⁠under immense pressure due to the continuing wars, with both Russia and the Middle East among key suppliers of the fuel.