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U.S. Refiners Thrive as Diesel Supply Shrinks

Wall Street Journal US Business •
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Diesel buyers are competing for a shrinking supply amid disruptions in Russia and the Middle East, with the U.S. at the center of a scramble that could intensify into winter.

Meanwhile, lawmakers introduced a new law aimed at accelerating the production of modular and manufactured homes, reflecting a broader push to diversify energy and housing resilience amid geopolitical tensions.

The squeeze across the global refined‑product markets, where gasoline, diesel, and jet fuel compete for the same refinery capacity, is pushing prices higher. Giulia Petroni reports that the margin, or crack spread between the price of West Texas Intermediate crude and diesel futures, hit $101.86 on Monday—the first time the margin has hit triple digits.

The average on‑highway price for a gallon of diesel rose about 20 cents to $5.45 in the week ending Monday, according to the U.S. Energy Information Administration. These figures reflect the pressure on refineries to keep output steady while buyers scramble to secure diesel for transport, power generation, and industrial use. As the winter approaches, market participants watch closely for further shifts in supply and pricing that could reshape the U.S. refining landscape.