Why Global Diesel Prices Are Soaring: War, Hurricanes & Drone Attacks

Diesel prices are hitting “insane” levels at $180/barrel wholesale, and a Gulf hurricane could mean “apocalyptic numbers” past $200, warns Gulf Oil’s Tom Kloza. He breaks down the unprecedented impact of drone attacks on global oil infrastructure, further tightening the refined products market. Plus, how US diesel exports are soaring and fuel surcharges are leaving shippers in the red. Wholesale diesel prices have climbed to roughly $180 a barrel on world markets — already exceeding the peaks many analysts expected after Russia’s invasion of Ukraine — and could push above $200 a barrel if a tropical storm threatens Gulf Coast refining infrastructure, according to Tom Kloza, Chief Energy Advisor for Gulf Oil, speaking on FreightWaves Today. The warning comes as fresh Energy Department data showed the United States exported nearly 2 million barrels of distillate last week, a record, on top of domestic consumption running close to 3.