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 0.37% to $99.62 a barrel, while West Texas Intermediate fell 0.49% to $90.08. European low-sulphur gasoil's premium to Brent hit a record of about $95 a barrel after President Donald Trump backed the idea of a diesel export ban to lower record-high prices caused by 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. Saudi Arabia resumed operations on its East-West Pipeline to the Red Sea on Tuesday, and Iraq is increasing exports, supporting improved supply. A senior Iranian official said the Strait of Hormuz could reopen within seven days if the US eases military pressure and lifts its blockade on Iranian ports.