Gasoline, diesel and jet fuel prices rise as crude oil costs ease

Gasoline, diesel and jet fuel prices have increased in the United States and Europe even as global crude oil benchmarks declined, according to data compiled through July 10. Regular unleaded gasoline averaged $3.88 a gallon in the United States as of July 10, the third-highest price recorded for this date.

Diesel prices reached the second-highest level for the same period. Jet fuel costs eased slightly but contributed to higher airfares as carriers sought to recover earlier expenses.

Supply constraints Russia banned diesel exports after Ukrainian strikes damaged domestic refineries. Russia accounts for 11 percent of global diesel shipments. Countries including Brazil and Turkey increased purchases of non-Russian supplies, traders said.

Flows of refined products through the Strait of Hormuz fell to about 1 million barrels a day from 5 million barrels before recent military actions. Refineries in the United States have operated at high utilization rates for months, leaving limited spare capacity.

Seasonal and regulatory pressures Northern hemisphere summer demand coincides with reduced refinery output in Europe during heat waves. Cooling systems at some facilities cut production by as much as 15 percent. In the United States, distillate inventories sit near seasonal lows.

Record prices for renewable fuel standard compliance credits added to U.S. refining costs. Officials temporarily suspended a shipping mandate and waived some blending rules to address supply shortfalls. A Trafigura Group trader stated that inventories continue to draw despite maximum refinery runs.

The same trader noted that additional exports from China could ease pressure if sustained.