Diesel Refining Margins Slide Following G7 100 Million Barrel Stock Release

Key Facts

1The G7 announcement of a 100 million barrel release of crude and diesel has pressured middle distillate refinery margins.

2The ICE gasoil crack spread fell to approximately $70 per barrel from a high of $85 last week.

The G7 announcement of a 100 million barrel release of crude oil and diesel has pressured middle distillate refinery margins. Reuters reported that the ICE gasoil crack spread fell to approximately $70 per barrel, down from a high of $85 per barrel reached last week.

The decision follows a reduced risk of a U.S. diesel export ban, which has helped cool record-high crack spreads. According to ING, the release of emergency stocks over the next four months provides immediate market relief, although geopolitical tensions affecting commercial shipping transits continue to influence the broader energy landscape.