Diesel crack spread just broke $100 for the first time ever.
This is the margin refiners make turning crude into diesel. When it spikes like this, it means diesel is extremely tight relative to crude oil.
Usually signals supply issues, strong demand, or refining capacity problems. For context, normal levels are $15-25.
Watch trucking costs, inflation data, and anything tied to freight. Diesel prices feed directly into the cost of moving goods.
Refiners like $VLO, $MPC, $PSX print money in this environment. But higher diesel = higher input costs across the economy.
This is the margin refiners make turning crude into diesel. When it spikes like this, it means diesel is extremely tight relative to crude oil.
Usually signals supply issues, strong demand, or refining capacity problems. For context, normal levels are $15-25.
Watch trucking costs, inflation data, and anything tied to freight. Diesel prices feed directly into the cost of moving goods.
Refiners like $VLO, $MPC, $PSX print money in this environment. But higher diesel = higher input costs across the economy.