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Diesel futures fell more than 50 cents per gallon on November 1, 2022, as the prompt contract rolled to December. The drop followed extreme backwardation in the expiring November contract, which had inflated prices for near-term delivery.
Distillate inventories remained tight.
The roll shows the market expects somewhat better supply in December, which lowers near-term diesel and fuel-surcharge costs for buyers. Suppliers may hold back purchases until the new month, tightening physical supply in the interim.
mansfield.energyAlan ApthorpNov 1, 2022Not 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.
The prompt-month contract rolled from November to December on Nov 1, and the extreme backwardation in the expiring contract disappeared, which mechanically produced a drop of more than 50 cents per gallon.
