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Bloomberg reports that 0.1% gasoil, a high-sulfur diesel, has traded above cleaner diesel in the Mediterranean for the first time since at least 2022. The inversion is linked to an upcoming regulation that will tighten the sulfur limit for ship fuel.
The sulfur rule will shift demand toward cleaner grades, and the inverted spread indicates Mediterranean diesel pricing is being reshaped by regulation rather than crude costs alone. The effect on global feed freight costs is limited.
bloomberg.comJack WittelsMar 31, 2025After 27 past neutral policy events, ULSD / Diesel moved a median -1.4% over 5 sessions (41% higher; middle half -4.3% to +2.6%), and -4.6% 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.
