The David Lin Report · Thursday, October 1, 2026
US diesel prices have reached historic highs, with the national average above $6.41 per gallon. This is driven by a combination of factors, including reduced refined product exports from the Middle East due to the Strait of Hormuz closure and refinery damage, and Ukrainian attacks disrupting Russian refining capacity. Russia has also banned diesel exports.
“However, diesel remains near record highs with a national average of $6.41”
“What you've generally seen in terms of this recovery, it's been heavily crude weighted. Well, products have been have have lagged both because the economics of these very, very high cost of transits are better kind of scaled across the largest VLCC tankers that carry crude.”
“Russia has formally banned the export of diesel following jet fuel and gasoline and only it was yesterday or the day before we heard that Moscow was extending that ban unsurprisingly through the end of October so it's one of these things every every month they announced so oh we're going to extend it again and it's like oh shocker but so between those you've lost one and a half to two million barrels a day of diesel supply in the market”