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ULSD futures rallied for a sixth straight session on October 28, 2022, reaching a six-month high of about $4.55 per gallon settlement. Low middle-distillate inventories and shortages spreading across the East Coast drove the rally.
Low Mississippi River levels constrained barge traffic, and Valero cut runs at its Memphis refinery by about 20%.
Lower river levels restrict barge movement of fuel and grain, which raises regional diesel costs and farm logistics expenses. Reduced refinery runs tighten supply further, supporting diesel prices into the heating season.
dtnpf.comLiubov GeorgesOct 28, 2022After 113 past bullish logistics events, DIESEL moved a median +0.6% over 5 sessions (54% higher; middle half -2.8% to +4.2%), and +0.2% 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.
The sixth straight rally session to a six-month high left prices stretched on thin supply, so the reversal from that peak was larger.
