What happened
The US diesel crack spread reached a record US$102.20 per barrel in mid-August, while the Singapore gasoil benchmark traded approximately US$56 above Brent crude. Low distillate inventories in major refining hubs and Middle East shipping disruptions have squeezed global fuel supplies.
Why it matters here
Australian resource operators rely heavily on diesel for site haulage, machinery operation, and regional freight. Sustained high refining margins increase input costs for miners and bulk commodity exporters, directly compressing profit margins even when underlying raw material prices remain steady.
What to watch
Official EIA fuel inventory releases and Singapore gasoil crack spreads to gauge ongoing fuel cost pressures on domestic industry.
Source
theoregongroup.com