Former U.S. President Donald Trump has urged Ukraine to cease its attacks on Russian oil refineries amidst a backdrop of record-high diesel prices in the United States. The appeal comes as U.S. diesel prices reached unprecedented levels, recently crossing $6.00 per gallon. Ukrainian attacks have reportedly contributed to the reduction in fuel supply, exacerbating the diesel squeeze. This situation is compounded by Russia’s ongoing ban on gasoline and diesel exports, which is set to continue until January 2027.
The developments have sparked concerns over the potential impact on crude oil markets, with some market observers suggesting that disruptions in oil supply could drive prices higher. Current market pricing reflects a slight increase in the probability of crude oil reaching a new all-time high by the end of the year. The September 30 market is currently priced at 3.8% for a YES outcome, while the December 31 market has increased to 14.5%.
The scenario underscores the sensitivity of oil markets to geopolitical tensions and supply chain disruptions. Market participants are closely watching the situation for any changes that could further impact pricing and supply dynamics.
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