Saudi pipeline outage and Joliet refinery outage send diesel to record highs

Two supply shocks just collided: a Saudi pipeline attack is squeezing global crude and diesel, while an Exxon Joliet refinery outage is choking Chicago-area gasoline and diesel supply. Retail pumps are already feeling it, and the futures curve is screaming.

Diesel cracks are blowing out as the Saudi East-West pipeline outage and Red Sea threats hit physical crude and distillate markets, with NY Harbor ULSD hitting record highs and NYMEX ULSD futures up over 27 cents. Domestically, an Exxon Joliet refinery power outage has cut roughly 10% of Chicago-area fuel supply, pushing Midwest gas and diesel prices sharply higher with warnings of $7 diesel. Meanwhile S&P Global flags global gasoline stocks at decade lows and diesel approaching historic lows, reinforcing a structurally tight refined products market even as SAF/biofuel policy and offtake deals continue apace.