U.S. diesel prices topped $6 a gallon for the first time ever as Ukrainian strikes on Russian refineries squeeze fuel supply. President Trump has asked Ukraine to stop hitting Russian oil facilities, while crude prices jump on separate fighting between the U.S. and Iran.
President Trump has urged Ukrainian President Volodymyr Zelenskyy to stop targeting Russian oil refineries, saying the strikes are worsening a global diesel shortage. According to CNBC: "He has to stop knocking out diesel fuel in Russia", Trump said during a visit to Ireland on Sunday.
Trump added that Zelenskyy should pursue other targets instead, pointing to Russia's role in the shortage rather than the Middle East. A spokesperson for Ukraine's Foreign Ministry did not immediately respond to CNBC's request for comment.
Diesel hits a record
Ukraine has stepped up attacks on Russian oil facilities and logistics infrastructure over more than four-and-a-half years of war, aiming to raise the cost of the conflict for Moscow. The strikes have hampered Russia's refining capacity, pushing Moscow to extend a ban on diesel exports through the end of September to stabilize domestic supplies.
The fallout has reached U.S. drivers. Diesel, essential for trucking, shipping, mining and farming, topped $6 per gallon for the first time ever on Friday. The national average stood at $6.06 per gallon, with truckers and farmers now paying about 63% more to fill up than a year earlier.
Crude oil climbs on Iran conflict
The diesel spike coincides with a separate jump in crude oil prices tied to fighting between the U.S. and Iran in the Middle East. Brent crude futures with November expiry rose 3.1% to $107.86 per barrel on Monday morning, extending a gain of more than 20% over the past month.
U.S. West Texas Intermediate futures with October expiry traded 3.1% higher at $103.18, a contract up nearly 25% over the past month that surpassed $100 for the first time since May last week.
Fresh strikes from the Iran-backed Houthis on Saudi Arabia and Iranian attacks on ships in the Gulf over the weekend added to regional supply concerns. Saudi Arabia's East-West pipeline, which helps the kingdom bypass the Strait of Hormuz, was temporarily shut on Friday following a drone attack.
Source: CNBC
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