Tuesday, October 25, 2022

Gulf Coast U-L sulfur diesel plunges

The Gulf Coast benchmark differential for ultra-low sulfur diesel (ULSD) plunged to a 7-year low Oct. 20 following freeze notices from Colonial Pipeline in Mississippi. Platts assessed ULSD loading onto the 60th cycle at NYMEX November ULSD futures minus 25.25 cents/gallon Oct. 20, marking an 8.25-cent decline on the day. It was the weakest differential since Feb. 26, 2015, when value was assessed at front-month futures minus 33.25 cents/gallon, according to data from S&P Global Commodity Insights. Value dove following a freeze announcement from Colonial for cycles 58-thru-60 north of Collins, Miss. Colonial also announced the 61st cycle was allocated While allocation indicates that nominations from shippers exceed available space on the line, a freeze means the line cannot accept any more shipments for that cycle. On Oct. 19, the last cycles frozen by CP were cycles 25-28, which were scheduled in early summer. The 33rd cycle was the last to be allocated. (Hellenics Shipping 10/24/22) US Gulf Coast ULSD differential collapses amid Colonial Pipeline freeze notice | Hellenic Shipping News Worldwide

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