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The US Gulf Coast ULSD differential fell to minus 25.25 cents/gal on Oct. 20, an 8.25-cent drop and the weakest level since 2015.
The decline followed Colonial Pipeline freeze notices for cycles 58-60 north of Collins, Mississippi, while cycle 61 was allocated.
A pipeline freeze blocks shipments into the Southeast and cuts spot demand for barrels at the Gulf Coast, pushing the cash differential lower. Diesel users in the Southeast may see physical tightness ease even as futures remain elevated.
spglobal.comEllie ValenciaOct 20, 2022After 18 past bearish logistics events, ULSD / Diesel moved a median +0.6% over 5 sessions (56% higher; middle half -1.5% to +3.3%), and -0.2% 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.
