Global Diesel Supply Crunch Lifts Biodiesel Premiums Ahead of Tuesday EPA Public Hearing
A global diesel supply crunch is dominating energy markets this week, pushing prompt-month Gasoil spreads into record backwardation. The Jul/Sep Gasoil spread reached +$71/mt, a level not seen in years, while prompt ULSD barges in the ARA hub surged to a +$44/mt premium. These price signals reflect an urgent shortage in physical supply, not just in the U.S. but across Europe and globally. In Northwest Europe, refinery outages, permanent closures, and limited diesel-rich crude inputs have contributed to the lowest diesel share of refined product output—just 31.4% in June—underscoring how precarious the supply situation has become.
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