Diesel crack spread surges to highest level on record

Diesel crack spreads have surged to their highest level on record, signaling extreme strength in refining margins for the fuel.
Crack spreads measure the difference between crude-oil input costs and the value of refined products, making the spike an indication of unusually tight diesel supply relative to demand.
Persistently elevated diesel margins can translate into higher transportation costs and additional inflation pressure while benefiting refiners exposed to the product.