Posted on 09/13/2026 10:58:14 AM PDT by Mount Athos
Last week, the price of diesel in the US hit $5.85 a gallon, beating the record of June 2022. This sharp rise in fuel price threatens everything from food prices to bond yields.
The margin between crude oil and the price of diesel has soared to $100 a barrel.
The amount of waterborne diesel exports has 47 million fewer barrels of diesel. Firstly, shipping through the straits of Hormuz has been severely curtailed since February. That hasn’t only blocked crude exports, it has also blocked refined products too — and the conflict has knocked out refineries directly.
Responding to Hormuz closure, China curtailed its exports of refined fuel, redirecting it to domestic economy.
Secondly, Ukrainian drone strikes have impacted 80% of Russian refineries, leading to loss of roughly 3 million out of 7 million barrels a day of Russian capacity. Russia was roughly 11% of global diesel supply, but now it has its own export ban and is importing from India.
Thirdly, the oil disruption has led to shortage of oil suited for diesel refining. For example, the US has produced more oil, but its diesel refineries rely on sour oil from the Middle-east and Canada.
In Europe, refining capacity has been in structural decline since 2000. It has fallen from 14 million barrels in 2000 to 11 million barrels today.
The US strategic oil reserve has been drained to keep oil prices from rising. It currently sits just 36 million barrels above the 250 emergency floor. US refineries are already running at 98%. If we look at overall storage of crude, gasoline and distillate, we can see 2026 is significantly lower than the previous years.
Farmers in particular rely on diesel along with higher fertiliser costs threaten higher food prices and a rise in farm bankruptcies.
(Excerpt) Read more at economicshelp.org ...
Time to start making diesel from natural gas. We have plentiful supplies of NG, and the technology is already in use.
Data on maritime traffic shows a sharp decline in tanker movements through the Strait of Hormuz, with only one tanker passing through the waterway on Friday, September 11, compared with 31 tankers during the same period last year.
The figures indicate that tanker traffic through the Strait of Hormuz has fallen by around 97 percent.
Satellite tracking data also showed a Chinese tanker passing through the Iranian route of the Strait of Hormuz on the previous day. Nevertheless, US President Donald Trump reiterated that the United States was “in control of the strait.”
Meanwhile, American economist Steve Hanke, commenting on the situation, said, “Thanks to President Trump, the Strait of Hormuz is effectively closed in every respect.”
The Strait of Hormuz is one of the world’s most important energy transit routes, and the sharp decline in tanker traffic points to a significant disruption in maritime passage through the strategic waterway.
https://wanaen.com/tanker-traffic-through-strait-of-hormuz-falls-97/
Refiners are making out like bandits.
We would have heavy Canadian oil if Trump didn’t decide to also declare a trade war.
Venezuelan oil is ideal for diesel. I thought we are now kings of that.
If China can ban diesel exports why doesn’t Trump? He has screwed around and manipulated so many other things, why not one more?
Good post. No rabble-rousing, just facts and information.
Before the Iran War, while Ukraine was attacking Russian refineries, the average price of regular diesel was $3.76 It has now surged past $6.00
So no, the current high price of gasoline and diesel is NOT because of Ukraine, its because the Strait of Hormuz is effectively closed.
Before the conflict in late February, the national average price for a gallon of diesel in the U.S. was about $3.76, according to AAA
If only we had oil under our soil. (/S)
“Farmers in particular rely on diesel along with higher fertiliser costs threaten higher food prices and a rise in farm bankruptcies.”
Does it really make sense to grow as much corn for gasohol as we do?
How many [fractional, hopefully] gallons of Diesel does it take to make and get a gallon of Ethanol to the loading platforms at gas station tanker truck mixing and loading stations?
An informative article. Don’t see many of them lately.
Long past time to make a decision on the Iran war isn’t it? Either go all in with ground troops and actually try to win it or get out now. The status quo isn’t sustainable.
“Does it really make sense to grow as much corn for gasohol as we do?”
No.
Does it make sense to have tobacco support payments?
Except that our foreign policy adventures are IQ tests, and they usually require a few elections before we can pass them.
(The last President to actually pass such an IQ test was Reagan, when he pulled the Marines out of Beirut after the 10/23/83 bombing of their barracks.)
My understanding is that US refiners’ basic grade of gasoline is 87 octane “unleaded regular” and that ethanol is the chief ingredient to increase the octane rating to make premium grades which a lot of the modern turbo gasoline engines require. What started out as a clean-air initiative is now baked into the US refining & blending processes. So, maybe not that easily undone.
Joe Biden Brags About Killing Oil Industry During Appearance on ‘Jay Leno’s Garage’ (VIDEO)
https://www.thegatewaypundit.com/.../joe-biden-brags.../...
we wouldn’t be having the trade war with canada if they weren’t illegally trying to pass off chinese steel as canadian steel
Because of the mountainous terrain, this would be a death trap for ground troops. Better to keep pounding Iran with airborne bombs and missiles. Do what Ukraine is doing to Russia, attack the Iranian infrastructure until the society collapses and turns on the military there. Lay siege to Iran.
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