Book Says Russian Diesel Won't Offset Price Surge

• Houthi attacks on Saudi Aramco headquarters raise concerns about regional escalation and potential targeting of critical energy infrastructure like Abqaiq, which could lead to significant oil price increases.
• The Russian diesel deal is estimated to provide only 5-20 cents/gallon relief by Q4, insufficient to offset the year's 65-70% diesel price surge due to limited volume and sanctions on Russian refinery technology.
• Gasoline prices remain above $4/gallon, tying 2022's record for days at that level, with low inventories and other supply-side risks (like hurricanes) preventing quick price reductions.

Kevin Book, managing director at ClearView Energy Partners, discusses the potential for further escalation in the Middle East following Houthi attacks on Saudi Aramco headquarters, which could significantly impact oil prices. He also analyzes the limited effect of the Russian diesel deal on global prices and highlights persistent high gasoline prices due to low inventories and ongoing supply risks.