Attacks on oil refineries in Russia and Saudi Arabia send diesel prices higher in world

European refining margins for diesel have risen by around 10%. In the United States, futures prices for ultra-low-sulfur diesel climbed 7.4% to $4.19 per gallon (3.785 liters), marking the largest daily increase since July 13.

The price surge followed attacks on oil refineries in Russia’s Republic of Tatarstan and in Jizan, Saudi Arabia. The Jizan refinery has remained out of operation since July 27 following an earlier attack.

The attacks have reportedly removed a significant volume of diesel supply from the market, pushing diesel prices higher at a faster pace than crude oil. Brent and US West Texas Intermediate (WTI) crude prices rose by around 5%.

The increase in fuel prices is particularly concerning for farmers, who rely heavily on diesel for agricultural machinery and transportation. Market tensions could therefore increase farming costs and, in turn, put additional pressure on food prices.