NEW YORK / RankWire.AI / – In the United States and Europe, diesel prices have remained high on Wednesday due to limited inventories and refinery outages. On Monday, U.S. ultra-low sulfur diesel futures rose by 7.4% to settle at $4.19 a gallon, marking the largest daily increase since July 13. As of early Wednesday, the contract traded close to $4.28 a gallon, with refined-product markets continuing to reflect supply constraints across major consuming regions.
Current U.S. diesel inventories are significantly below recent seasonal averages. The U.S. Energy Information Administration reported 107.2 million barrels of distillate stocks for the week ending July 31. This figure is 3.5 million barrels lower than the previous week. Additionally, inventories are 5.1% below the same period last year and 16.1% below the comparable level in 2024. Distillates, which include diesel and heating oil, are crucial for transportation, industry, and seasonal energy needs.
Despite a slight weekly dip, retail diesel prices in the U.S. remain elevated. The national average reached $5.257 a gallon on August 10, down from $5.348 the week before. Nevertheless, this is still well above the $4.578 average recorded on July 6. European fuel markets are experiencing similar pressures, with low-sulfur gasoil margins climbing sharply. The premium over crude oil hit a record $74.66 a barrel on July 30, as finished diesel commanded higher prices.
Refinery outages impact global diesel availability
Disruptions at several refineries have further tightened the global supply of diesel for international buyers. An attack damaged a refinery in Russia’s Tatarstan region, compounding lower processing activity across the country. Saudi Arabia’s Jazan refinery has remained offline since July 27 following an earlier attack, removing another source of refined products from international trade. During June, refinery runs in various producing regions already declined below last year’s levels, restricting the flow of fuel into global markets.
Export restrictions have also limited refined-product movements. Russia extended restrictions on gasoline and diesel exports through January 31, 2027. Meanwhile, vessel traffic through the Strait of Hormuz has sharply decreased for Middle East shipments. China has exported less refined fuel due to weakening domestic refinery activity. The European Central Bank reported diesel pump prices near €1.98 per litre in the third week of July, with higher refining margins contributing to increased retail fuel costs.
US refinery activity remains vigorous despite low inventories
In the United States, refiners have processed large quantities of crude oil, yet diesel stocks have not returned to typical seasonal levels. During the first seven months of 2026, crude input reached its highest point since 2019 for that period. Strong refinery utilization and rising processing margins have supported these efforts. However, distillate stocks at the start of August are at their lowest for this time of year in nearly thirty years. The ongoing inventory shortage coincides with diminished product exports from several overseas refining centers.
Crude oil prices also increased on Wednesday, with Brent crude near $89.81 a barrel and West Texas Intermediate around $84.08. The rising cost of diesel is driven more by shortages of finished fuel than crude supply alone. Diesel supports key sectors such as trucking, agriculture, construction, and manufacturing across both regions. Limited U.S. inventories, high European refining margins, refinery outages, and export restrictions continue to shape a tight global market for diesel and other middle-distillate fuels.