# ANALYSIS: European diesel tightness widens backwardation to 3-year highs in January

> European ICE low-sulfur gasoil prompt backwardation reached a three-year high in mid-January, with the February/March spread at $13/mt. Front-month prices hit seven-year highs as diesel supply tightened on lower imports and changing middle distillate yields.

- Date: 2022-01-19 · published 2022-01-19T12:00:00.000Z
- Category: market · region Europe · magnitude low
- Page: https://feedsoft.ai/events/43336-analysis-european-diesel-tightness-widens-backwardation-to-3-year-highs-in
- Commodities: [ULSD / Diesel](https://feedsoft.ai/c/DIESEL.md)

## Why it matters

Steep backwardation signals physically tight European diesel, raising fuel and freight costs for feed supply chains. It also points to firm energy-linked input costs into early 2022.

## Read by commodity

- DIESEL: bullish ▲

## Sources

- spglobal.com: https://www.spglobal.com/commodity-insights/en/news-research/latest-news/crude-oil/011922-analysis-european-diesel-tightness-widens-backwardation-to-3-year-highs-in-january

---
Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.