ULSD Continues to Skyrocket on Short Squeeze
Unfortunately you are all reading your nightly pricing correctly. As seen below, ULSD prices have risen almost a full $1 in the last four sessions.
Unfortunately you are all reading your nightly pricing correctly. As seen below, ULSD prices have risen almost a full $1 in the last four sessions.
On Tuesday morning we were feeling pretty good, relatively speaking, as the ULSD pit was almost .40 less than a week ago. Demand concerns over China’s lockdown and slowing production rates put pressure on an already inflated market.
The last three sessions have seen .4373 get peeled off the ULSD front month contract, with massive intraday swings. Yesterday at the open, APR22 ULSD fell almost .25 before rallying back to finish down only .0673.
March came in like a lion, lets hope it goes out like a lamb…..
What you are seeing on your nightly pricing is real, unfortunately. ULSD futures have risen over .80 in just 5 sessions. Since late November 2021, when the concern of the latest Covid Variant were announced, the pit has risen over $1.65.
Oil prices surged another 7% today. At peak intraday highs, WTI hit $105.14/bbl before settling at $103.41.
Oil prices closed up over 3% today, shooting up again on both continuing supply issues, and escalating tension at the Russia/Ukraine border.
Today saw WTI Crude prices break the $90/barrel threshold for the first time since 2014.
Oil prices are continuing to slide back down some after multiyear highs last week. (At time of writing at 10 this morning, both refined products are trending down)
Lots of interconnected events in Energy News this past week or so – we’ll run through and touch on some of the major items and attempt to keep it (relatively) brief.