Biodiesel Holds Firm as Diesel Scarcity Deepens
Crude fell again Tuesday, with August WTI down 4.45% to $78.93/bbl and Brent down 5.23% to $83.74/bbl, yet August ICE gasoil held at $1,232.50/mt, down only $0.50/mt. The divergence pushed August-December backwardation to $267.50/mt and August-March to $345.50/mt. The heating-oil crack reached 95.08, only 0.94 below the 2022 peak of 96.02, while the combined gasoline and heating-oil crack reached 72.11, its highest level on the chart since 2005. August gasoil also stands $338.70/mt, or 37.9%, above its 20-day weighted moving average of $893.80/mt. The market is no longer pricing broad crude scarcity. It is pricing an immediate shortage of refined products.
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