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Mexico began requiring ultra low sulfur diesel with 15 ppm sulfur for all diesel use, which is expected to add 150,000 to 180,000 barrels per day of ULSD demand. Most of that supply is expected to come from the US, which already ships 250,000 to 300,000 barrels per day of diesel to Mexico.
A sudden jump in US diesel export demand tightens distillate supply already strained by refinery utilization near 95%. That supports diesel prices and raises freight and processing costs for feed buyers.
freightwaves.comJohn KingstonJan 5, 2019After 90 past bullish policy events, ULSD / Diesel moved a median +1.4% over 5 sessions (66% higher; middle half -1.9% to +4.1%), and +0.1% over 20.
After 187 past neutral policy events, Crude Oil (WTI) moved a median -0.1% over 5 sessions (49% higher; middle half -4.0% to +3.5%), and +0.1% 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.
