# Marathon CEO predicts ‘stair-step’ of diesel margins in response to IMO 2020 - FreightWaves

> 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.

- Date: 2020-01-30 · published 2020-01-30T12:00:00.000Z
- Category: macro · region US · magnitude low
- Page: https://feedsoft.ai/events/55258-marathon-ceo-predicts-stair-step-of-diesel-margins-in-response-to-imo-2020
- Commodities: [ULSD / Diesel](https://feedsoft.ai/c/DIESEL.md), [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md)

## Why it matters

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.

## Read by commodity

- WTI: neutral
- DIESEL: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DIESEL | 2017-06-08 | [Reduced downward margin - DHL Freight Connections](https://feedsoft.ai/events/70703-reduced-downward-margin-dhl-freight-connections.md) | -0.7% | +4.1% |
| DIESEL | 2020-09-17 | [Secondary Market Demand Crucial to Diesel Recovery \| Energy Intelligence](https://feedsoft.ai/events/51275-secondary-market-demand-crucial-to-diesel-recovery-energy-intelligence.md) | -0.9% | +7.3% |
| DIESEL | 2025-01-28 | [Fuel prices: What’s in store for 2025? \| IRU \| World Road Transport Organisation](https://feedsoft.ai/events/26679-fuel-prices-what-s-in-store-for-2025-iru-world-road-transport-organisation.md) | -0.5% | -3.4% |
| DIESEL | 2025-03-20 | [Diesel disconnect highlights market angst, not market reality: Bousso](https://feedsoft.ai/events/25789-diesel-disconnect-highlights-market-angst-not-market-reality-bousso.md) | +2.6% | -5.2% |
| DIESEL | 2023-02-24 | [Week in Review – February 24, 2023 - Mansfield Energy](https://feedsoft.ai/events/37502-week-in-review-february-24-2023-mansfield-energy.md) | +6.1% | -1.0% |
| WTI | 2022-06-14 | [Diesel prices: The loss of US refining capacity is making things worse - FreightWaves](https://feedsoft.ai/events/41119-diesel-prices-the-loss-of-us-refining-capacity-is-making-things-worse.md) | -8.6% | -19.2% |
| WTI | 2021-06-28 | [New streak underway: DOE/EIA diesel price up 9th straight week - FreightWaves](https://feedsoft.ai/events/46785-new-streak-underway-doe-eia-diesel-price-up-9th-straight-week-freightwaves.md) | +1.5% | -2.8% |
| WTI | 2021-07-29 | [Valero sees favorable refining margins for 2021 as it hikes renewable diesel output \| S&P Global](https://feedsoft.ai/events/46038-valero-sees-favorable-refining-margins-for-2021-as-it-hikes-renewable-diesel.md) | -5.8% | -5.4% |

## Sources

- freightwaves.com: https://www.freightwaves.com/news/marathon-ceo-predicts-stair-step-of-diesel-margins-in-response-to-imo-2020

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.