Soaring Refining Margins Keep Heating Fuel Costs Elevated Despite Crude Pullback

Surging refining margins and global capacity bottlenecks are driving up heating oil and diesel prices even as crude retreats, intensifying political fallout across the US. Nationwide diesel has topped $6 per gallon, and heating oil costs jumped about 60% after conflict with Iran and the closure of the Strait of Hormuz, adding up to $600 per household. Although WTI eased from $107.02 to $96.16 per barrel, roughly 5 million barrels per day of offline refining capacity and low inventories have pushed Gulf Coast diesel margins to $43.52 per barrel, prompting lawmakers to demand emergency reserve releases.