Why is the price of diesel still falling when crude oil is actually going up?
Why is the price of diesel still falling when crude oil is actually going up? Here is my list of answers:
- When prices are declining, there is a long lag between crude costs falling and diesel matching. When prices are rising, there is no lag. (Up like a rocket – down like a feather)
- The U.S. became a net exporter of oil and oil products for the first time since at least 1973 (Source: Energy Information Administration)
- OPEC and Russia cut production 1.2 MM barrels per day
- [Program (computerized) trading] is modifying volume and liquidity,” said the Chief Investment Officer of Arctic Blue Capital Ltd. “What would have happened in one week is happening in one day.”
- Prices are down while volatility is up – see the accompanying graphs from the Wall Street Journal