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Diesel Surges Past $6.50 as Refinery Outages Squeeze Global Supply

Diesel prices have climbed to $6.50 per gallon, exceeding the previous record by 50 cents, with further increases likely over the next 100 days, according to energy analysts. Saudi Arabia's East-West pipeline closure is compounding supply constraints, removing roughly 1.8 million barrels per day of refining capacity—about 2% of global output. The disruption has prompted Saudi Arabia to suspend oil loading for European September deliveries. Combined with earlier losses, the world has shed approximately 7 million barrels per day of refining capacity, primarily from Russia and the Persian Gulf. Truck-stop fuel margins have compressed significantly, with retail prices lagging wholesale costs. Average margins have moved to approximately $0.07, compared to typical pump markups of $0.40, signaling substantial catch-up pricing ahead. Higher diesel prices at travel centers are also depressing in-store merchandise sales.