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Bahrain Petroleum agreed on Nov. 16 to a $1.25 per barrel premium over Mideast quotes for calendar 2017 ULSD volumes, less than half the $2.65/bbl premium agreed for 2016.
The sharp drop signals a steep fall in Mideast diesel term premiums.
Weaker Mideast diesel premiums signal oversupply in middle distillates, which tends to pressure diesel prices and refiners' margins. For feed buyers this is a minor input-cost signal via freight and fuel.
energyintel.comNov 16, 2016Not 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.
