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Diesel and crude entered 2021 on a bullish run, with the EIA retail diesel price rising for nine straight weeks to $2.64 a gallon. The article expects pandemic-driven distortions, such as the crude-to-diesel spread swings seen in 2020, to ease.
OPEC+ output restraint was cited as a market shock.
Expected normalization of the crude-diesel spread and continued OPEC+ restraint point to firmer diesel costs, which feed buyers face in freight and processing.
freightwaves.comJohn KingstonJan 7, 2021After 105 past bullish macro events, ULSD / Diesel moved a median -0.4% over 5 sessions (45% higher; middle half -3.4% to +1.8%), and +1.2% over 20.
After 487 past bullish macro events, Crude Oil (WTI) moved a median +1.0% over 5 sessions (60% higher; middle half -2.0% to +4.0%), and +1.5% over 20.
After 323 past bullish macro events, Crude Oil (Brent) moved a median +0.7% over 5 sessions (58% higher; middle half -2.9% to +3.7%), and +1.3% 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.
