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Marathon Petroleum's CEO said diesel prices have not strengthened relative to crude in the early weeks of IMO 2020 and expects gains to come gradually through the year. The company noted that high-sulfur fuel oil prices have slid, while compliant very low sulfur fuel oil has risen.
A refiner expecting gradual, stair-stepped diesel margin gains implies no sharp near-term diesel rally, which keeps freight and feed transport fuel costs contained. Weak high-sulfur fuel oil prices also shape bunker costs for ocean grain freight.
freightwaves.comJohn KingstonJan 30, 2020After 11 past neutral macro events, ULSD / Diesel moved a median +1.8% over 5 sessions (64% higher; middle half -0.6% to +4.1%), and +3.9% over 20.
After 102 past neutral macro events, Crude Oil (WTI) moved a median -0.1% over 5 sessions (49% higher; middle half -3.3% to +2.5%), and +1.8% 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.
