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US Gulf Coast diesel surged to its highest level since October 2019 on Oct. 27 as the region prepared for Tropical Storm Zeta, which was expected to make landfall in Louisiana.
About half of Gulf of Mexico oil and gas volumes were reportedly offline ahead of the storm, and large ULSD cargoes were booked for early-November loading to Brazil.
Storm-related production shut-ins and strong export demand tighten prompt diesel supply, which lifts farm and freight diesel costs and feeds into the cost of hauling feed ingredients.
cphibiz.comOct 29, 2020After 39 past bullish weather events, ULSD / Diesel moved a median +2.4% over 5 sessions (59% higher; middle half -4.5% to +6.1%), and +8.9% 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.
