Oil holds near two-week lows as diesel cracks hit record peak

Oil prices held near two-week lows on Wednesday as improving Gulf crude supplies weighed on the market, though diesel refining margins hit a record high on potential restrictions to US diesel exports. Brent crude futures rose $1.15 to $100.40 a barrel, while West Texas Intermediate gained 35 cents to $90.90. European low-sulphur gasoil's premium to Brent hit a record of about $95 a barrel after US President Donald Trump backed a diesel export ban to lower prices, which have spiked due to a global supply shortage. Europe relies heavily on US diesel and jet fuel imports since the US-Israeli war on Iran disrupted Middle East supplies. Oil prices have faced pressure from rising Gulf supplies, including Saudi Arabia resuming its East-West Pipeline and Iraq increasing exports. US crude inventories rose by 1.8 million barrels last week, contrary to analyst expectations for a decline. Analysts warn a diesel export ban could worsen global supply and economic disruptions.