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Truck News columnist Roger McKnight argues diesel prices will rise after IMO 2020, even though they have fallen so far. He says surplus marine bunker inventories and weak gasoline cracks pushed vacuum gas oil into distillate production, depressing diesel.
Mild winter weather has also reduced distillate demand in heating oil markets.
The expected reversal in diesel prices would raise trucking and fuel costs for feed deliveries in coming months. Lower distillate demand is a near-term bearish factor.
trucknews.comRoger McKnightFeb 15, 2020After 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.
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.
