2 weeks ago
Refinery Attacks in Russia-Ukraine War Trigger Global Fuel Price Surge
Some countries are fighting wars right now.
During these wars, places that make fuel, called refineries, have been attacked.
Ukraine used flying machines called drones to attack fuel factories in Russia.
Another group called the Houthis attacked a fuel factory in Saudi Arabia.
When fuel factories get damaged, there is less fuel for cars and trucks.
When there is less of something, it usually costs more money.
So diesel fuel prices are going up around the world.
In the United States, a gallon of diesel now costs about $5.32, which is more than it cost last month or last year.
The fuel factories are already working very hard to make more fuel, but they cannot make enough.
Experts think fuel prices will probably stay high for a while.
Ukrainian drone attacks on Russian refineries and a Houthi attack on a Saudi refining facility have disrupted the global fuel supply balance.
US diesel futures rose 7.4% to $4.19 per gallon on Monday, their sharpest gain since July.
The US average retail diesel price reached $5.32 per gallon on Tuesday, up from $4.88 a month ago and $3.71 a year ago.
The 3-2-1 crack spread, a key refining margin benchmark, surged past $70 per barrel compared with a typical range of under $20.
US diesel inventories are at their lowest level for this time of year in three decades, while Europe faces a refinery shortage linked to decarbonization efforts.
- Who
- Ukraine's drone attacks on Russian refineries, a Houthi attack on a Saudi refining facility, and refineries and fuel consumers in the US, Europe and China
- What
- Attacks on refineries disrupted global fuel supply, causing diesel prices and refining margins to surge
- Where
- Russia, Saudi Arabia, the Middle East, the United States, Europe and China
- When
- Recent days — US diesel futures rose sharply on Monday, retail prices were recorded on Tuesday, and China's export cap relaxation applies for August
- Why
- The war in the Middle East and Ukrainian drone attacks on Russia's refinery network upset the balance of global fuel supply
Key facts
- European refining margins
- Up 10%
- US diesel futures (Monday)
- $4.19 per gallon (+7.4%)
- US average retail diesel price (Tuesday)
- $5.32 per gallon
- Retail diesel a month ago
- $4.88 per gallon
- Retail diesel a year ago
- $3.71 per gallon
- 3-2-1 crack spread
- Above $70 per barrel (typical range: under $20)
- Refinery utilization rates
- Exxon and Chevron 95-97%; Shell above 100%
- US diesel inventories
- Lowest for this time of year in three decades
Quotes
Sumit Ritolia
Kpler lead analyst for refining supply and modelling
“"Refining margins remain elevated because every additional barrel of product has become significantly more valuable than every additional barrel of crude."”
wionews.com










