I was wrong

Diesel prices are holding their own— despite refineries coming on line. What gives?  

  • While fuel exports haven’t hit records, they are trending higher than in prior years. Seaborne shipments of gasoline, diesel, and jet fuel departing the U.S. Gulf Coast in March, April, and May averaged 32% higher compared with the same three months last year, and 11% higher than the same period in 2019, according to market-intelligence firm Kpler.
  • Inventories are down.
  • Long-term futures are lower than today’s prices. This means that putting product in stock can be costly (buy today at high prices, sell in 6 months, and lose money).

 

  

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oil week 26

Future delivery prices are an indication of the direction the market may go. They specifically exclude all taxes.