Trump EO permits dyed diesel on highways as prices hit record $6+/gal
Diesel finally cooled off Tuesday even as the White House took the extraordinary step of letting truckers burn tax-exempt off-road fuel on public highways ā a sign of just how stretched supply has gotten. Crude's slide on Hormuz optimism and a Saudi price cut is giving the complex some breathing room, but refining margins remain eye-watering.
Diesel cracks remain near $114/bbl even as futures retreated Tuesday on signs of improving Middle East supply, a hefty Saudi price cut, and increased Hormuz tanker transits. The Trump administration's executive order allowing dyed (off-road, tax-exempt) diesel onto highways underscores the severity of the diesel shortage that pushed the national retail average above $6/gal in September for the first time ever, squeezing trucking fleets from Kansas City to the Midwest. Meanwhile EIA data show both crude prices and refinery margins broadly rose through Q3, and the SPR has been drawn down to its lowest level since 1982 as Washington continues emergency releases to stabilize markets.