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Wells Fargo data shows China's apparent diesel demand fell 14% in March and 19% in April 2019, reaching lows not seen in a decade. Monthly demand has declined since December 2017.
Wells Fargo links the drop to economic weakness and the U.S. tariff dispute.
A sharp fall in China's diesel demand signals weaker industrial and freight activity, which lowers global fuel demand and pressures crude prices. Weaker Chinese growth also reduces import demand for feed commodities.
cnbc.comFred ImbertMay 28, 2019After 79 past bearish macro events, ULSD / Diesel moved a median -1.0% over 5 sessions (39% higher; middle half -5.7% to +1.7%), and -1.5% over 20.
After 565 past bearish macro events, Crude Oil (WTI) moved a median -1.4% over 5 sessions (41% higher; middle half -5.9% to +3.0%), and -0.5% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
