Comment dated Wednesday Apr 30, 2025: PM

Diesel fuel contracts of 42,000 gallons delivered to New York Harbor destinations is trading within 11 cents of 4-year lows dating back to April 2021. The high end of the July 2024 trade is about $2.80 per gallon versus the current $2.00.

Demand for gasoline and Diesel has continued to soften with economic slowdown in China, while supply has expanded. (See graphic below) Crude oil is 50% of the diesel price, the balance is refining, transport, and taxes. As an economic canary similar to copper prices, the current implication of lower fuel prices is global economic slowing.