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Six tankers carrying about 4 million barrels of diesel from the Middle East and India arrived in New York between January 21 and February 6 after a cold blast lifted US benchmark diesel prices. Diesel has since dropped as much as 11 percent from its January 26 high, and several vessels bound for New York have been diverted to Europe.
Diverted cargoes reduce the arbitrage pull into the US East Coast, so falling diesel prices remove the incentive for long-haul imports. Distillate prices are a cost input for feed transport and processing, so softer diesel eases logistics costs.
business-standard.comReutersFeb 9, 2018Not enough comparable past events yet for a historical read.
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.
US benchmark diesel fell as much as 11% from its Jan 26 high as cold-driven price spikes faded and arbitrage cargoes arrived in New York, with vessels diverted to Europe, which directly explains the supply-driven drop.
