Diesel outpaced oil price gains, highlighting traders’ concerns that the conflict between Israel and Iran could disrupt fuel flows to the tight European market.
The premium between benchmark diesel futures in Europe and crude — known as the crack — widened to its highest since February on Monday, fair value data compiled by Bloomberg News show. Diesel markets in Asia and the US also showed signs of strength.
“The increase in the crack is due to the Middle East conflict and the potential difficulty of supply into structurally short Europe,” said George Shaw, an oil analyst at Kpler. Increased tensions ...
