Gasoil Tail Move Pulls Biodiesel Higher as HVO Holds the Top of the Barrel
ICE gasoil settled at 1,206.75, up 81.75 on the day. That is a move of more than 4%, beyond typical daily volatility even in stressed markets. The move is confirmed by structure, with front spreads widening again, which points to prompt tightness rather than macro positioning. Brent traded above 101 and WTI above 93, but products are clearly leading crude. Options markets are reinforcing the same message. ICE gasoil May calls still show large open interest at extreme strikes, with positioning at 1,750 and 2,000 with roughly 14 days to expiry. Implied volatility is above 140%. This indicates the market is still pricing tail risk and further upside rather than normalization.
Want to read more?
Subscribe to globalbiodiesel.com to keep reading this exclusive post.
