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Prices and margins for motor and aviation fuels fell globally as lockdowns and grounded flights cut demand. Refiners shifted capacity into diesel, and U.S. ULSD cash prices slid to their lowest seasonal level since at least 2011.
Jet fuel margins in Asia turned negative for the first time in over a decade.
Collapsing fuel demand and refinery overproduction push down diesel costs for trucking and farm operations, lowering feed transport and grain-hauling expenses. Lower crude-linked energy prices also weigh on the broader feed cost outlook.
hydrocarbonprocessing.comMar 23, 2020After 79 past bearish macro events, ULSD / Diesel moved a median -1.0% over 5 sessions (39% higher; middle half -5.7% to +1.7%), and -1.5% over 20.
After 565 past bearish macro events, Crude Oil (WTI) moved a median -1.4% over 5 sessions (41% higher; middle half -5.9% to +3.0%), and -0.5% 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.
Dated 2020-03-23, it shows fuel prices and margins collapsing globally as lockdowns cut demand, which matches the sharp WTI move that day.
