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Northland Energy Trading's Dan Lothrop traces how ultra-low sulfur standards changed East Coast distillate demand and hedging. He notes that physical product specifications and NYMEX heating oil futures specifications have converged on the ultra-low standard.
Specification changes affect hedging effectiveness for diesel buyers but do not move supply or demand on their own. Price implication is neutral.
oilandenergyonline.comDan Lothrop, Northland Energy Trading, LLCSep 13, 2017Not 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.
