Risk Premium Exits Energy, Physical Biodiesel Holds Firm
Energy dominated the session. ICE gasoil suffered a two standard deviation move lower, with the prompt contract down roughly 8 percent on the day. Front month heating oil fell close to 7 percent. The catalyst was geopolitical. The US entered direct negotiations with Iran, sharply reducing near term war risk and triggering an aggressive unwind of energy length. Gasoil flat price dropped more than 60 dollars per metric ton in a single session.
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