Crack Spreads Surge to Record High
The Crack Spread index, which tracks the spread between crude oil and refined products from the average US refinery, surged to a record high of $75 per barrel in September 2026. This marks a near 200% increase since mid-February, before the US escalated threats of strikes on Iran. The conflict led to naval blockades that halted oil exports from GCC countries through the Persian Gulf, choking off crude oil feedstock for refineries in major oil-importing nations and driving US refiners to run above 100% of their nameplate capacity. The resulting surge in domestic gasoline and diesel prices prompted the presidential administration to consider a ban on diesel exports. Still, crack spreads remained at a record high as the threat to global diesel consumption from US refineries threatened the outlook on gasoline production, as the lack of flexibility from Gulf and West Coast refineries to switch to gasoline production could result in lower crude runs.
The Crack Spread index, which tracks the spread between crude oil and refined products from the average US refinery, surged to a record high of $75 per barrel in September 2026. This marks a near 200% increase since mid-February, before the US escalated threats of strikes on Iran. The conflict led to naval blockades that halted oil exports from GCC countries through the Persian Gulf, choking off crude oil feedstock for refineries in major oil-importing nations and driving US refiners to run above 100% of their nameplate capacity. The resulting surge in domestic gasoline and diesel prices prompted the presidential administration to consider a ban on diesel exports.
Still, crack spreads remained at a record high as the threat to global diesel consumption from US refineries threatened the outlook on gasoline production, as the lack of flexibility from Gulf and West Coast refineries to switch to gasoline production could result in lower crude runs.