Marine One flies US President George W. Bush over an oil refinery devastated by Hurricane Ike in 2008
A third distillate disruption
Diesel market disruptions have propelled crude prices above $100/bl twice in this century, and now oil teeters on the brink of another crude quality crisis
The combination of a glut of low-distillate-yield crudes, efforts by oil-exporting nations to boost prices, refinery shutdowns, and ill-conceived government policies threatens to push prices for diesel and low-sulphur distillates to record or near-record levels. The trade war instigated by the US will exacerbate market tightness by diverting key oil supplies from sophisticated refineries in the US, while Asian refineries purchase distillate-poor US crude to appease President Donald Trump’s trade hawks. To meet rising demand for these products, refiners will bid up low-sulphur, distillate-rich crudes such as Nigeria’s Bonny Light. The record or near-record production of US crude oils with low
Also in this section
10 March 2026
From Venezuela to Hormuz, the US—backed by the most powerful military force ever assembled—is redrawing not only oil and gas flows but also the global balance of energy power
10 March 2026
By shutting the Strait of Hormuz, Iran has cut exports of distillate-rich Middle Eastern crude, jet fuel and diesel, and is holding the energy market hostage
10 March 2026
Eni’s director for global gas and LNG portfolio, Cristian Signoretto, discusses how demand will respond to rising LNG supply, and how the company is expanding its own gas and LNG operations through disciplined, capital-efficient investments
9 March 2026
Petroleum Economist analysis sees increases in output from Saudi Arabia, Venezuela and Kazakhstan among others before region’s murky descent
