Diesel Prices Hit Record Highs as Global Refining Crunch Deepens

U.S. diesel prices topped $6.50 per gallon last week, setting another record as global refining capacity fails to offset lost Middle Eastern and Russian supply. Russia extended its diesel export ban until the end of October 2026, following continued Ukrainian drone strikes on its refineries, including one on Sunday targeting a major facility. The Middle East supply loss is three times larger than Russia's, according to International Energy Agency data cited by The Wall Street Journal. With U.S. refiners already running at maximum rates, Congress is weighing an export ban proposed by Rep. Tim Burchett and backed by Senate Majority Leader John Thune. Energy Secretary Chris Wright and Interior Secretary Doug Burgum oppose the measure. Roughly 50,000 barrels per day of Romanian refining capacity sits idle at Lukoil's Petrotel plant, sidelined by U.S. sanctions, as a potential Carlyle Group acquisition remains stalled in inter-agency review. Analysts warn an export ban could prompt China and India to follow suit, worsening shortages, with Europe the likely biggest loser.