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Energy Intelligence reports that analysts expect IMO 2020 to create a major compliant-fuel supply gap and raise diesel's premium to crude, while refiners and traders see enough flexibility to limit distortions. Diesel futures for January 2020 are little changed from current levels, and the HSFO-diesel spread is widening but within historical norms.
Market views are split on whether IMO 2020 will lift diesel relative to crude, which determines future diesel and freight cost exposure. Current futures pricing suggests the market has not yet priced in a major shock.
energyintel.comMar 20, 2019After 11 past neutral macro events, DIESEL moved a median +1.8% over 5 sessions (64% higher; middle half -0.6% to +4.1%), and +3.9% over 20.
After 54 past neutral macro events, BRENT moved a median +0.4% over 5 sessions (57% higher; middle half -2.8% to +2.5%), and +0.6% 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.
