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FreightWaves reports that the EIA estimated how the IMO2020 sulfur rule will affect diesel prices. Ships are expected to switch to low-sulfur marine diesel or gasoil, while scrubbers and LNG will be used by only a small share of vessels.
Trucking firms worry that higher middle-distillate demand will squeeze their margins.
Expected demand for low-sulfur marine gasoil points to firmer diesel prices, which raise freight costs for feed and grain shipments. The impact is largely a 2020 event.
freightwaves.comJohn KingstonJan 19, 2019After 109 past bullish report events, ULSD / Diesel moved a median +0.2% over 5 sessions (51% higher; middle half -3.3% to +3.9%), and +0.3% over 20.
Not enough comparable past events yet for a historical read.
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.
