Brazil's Diesel Prices Act as if Oil Cost $140 a Barrel, Not $72

Energy

Key Facts

—The disconnect. Brazil diesel prices are behaving as if crude cost about $140 a barrel, though oil futures sit near $72.

—The margin. European diesel refining margins topped $60 a barrel, the highest reading since at least 2011.

—The trigger. Russia banned diesel exports on July 8, and global refinery outages have tightened supply.