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Energy Aspects says diesel markets will stay weak even after the coronavirus outbreak ends, because jet fuel demand losses are pushing distillates into diesel. The Dated Brent to ULSD spread widened to $13.21 a barrel from $8.05 at the end of January.
The firm also cited refinery overcapacity as a continuing problem.
A prolonged distillate glut keeps diesel and freight-related costs low for longer, while the wider crack spread shows refiners are unlikely to cut output quickly.
freightwaves.comJohn KingstonFeb 17, 2020After 13 past bearish disease events, ULSD / Diesel moved a median -5.1% over 5 sessions (38% higher; middle half -6.3% to +1.2%), and -6.1% over 20.
After 30 past disease events, Crude Oil (Brent) moved a median -5.2% over 5 sessions (27% higher; middle half -8.9% to -0.1%), and -6.8% over 20.
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.
