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A FreightWaves oil report says few market signals so far show a diesel price spike from the IMO 2020 sulfur rule, which takes effect January 1, 2020. High-sulfur fuel oil and high-sulfur crudes have not collapsed in price, and cleanup of ship fuel tanks is expected to start as early as September.
Diesel buyers and feed transport costs could still rise if refiners must supply more low-sulfur distillate, but the lack of price signals so far suggests the effect is not yet priced in.
freightwaves.comJohn KingstonJul 27, 2019After 27 past neutral policy events, ULSD / Diesel moved a median -1.4% over 5 sessions (41% higher; middle half -4.3% to +2.6%), and -4.6% 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.
