Diesel Prices Continue To Slide
Diesel prices continue their slide this morning with heating oil futures posting the only loss among the ‘big 4’ energy benchmarks. The prompt month diesel futures contract is down about 1.5 cents while gasoline, WTI and Brent futures are all up around 0.5 percent so far this morning.
This is now the seventh day of the last eight that HO has traded lower, threatening the multi-month low set back in October around $1.82. The bearish trend, started over a week ago with the lack of severity in Iran’s retaliatory attack on the U.S., has been bolstered by strong inventory levels and a muted impact from the maritime diesel spec change.
While WTI futures are up this morning, the contract is set for its second weekly decline, save some late buying later today. Although the U.S.-China trade deal has been a driving positive force for the equity and energy sectors, there are concerns that the lack of a trade war won’t necessarily mean an increase in oil demand.