Latest / The Commodities Economy with Fexingo: Oil, Gold, Wheat, and Raw Material Markets
The Oil Price Disconnect Between Crude and Refined Fuels
Episode 38 of The Commodities Economy: Lucas and Luna explore the growing disconnect between crude oil prices and the price of refined fuels like diesel and gasoline. With Brent crude near $97 a barrel, diesel futures are surging to multi-year highs relative to crude, squeezing trucking companies and airlines. The hosts break down the role of refinery capacity constraints, low distillate inventories, and the shift to lower-sulfur marine fuels. They cite specific data: U.S. distillate stocks are 12% below the five-year average, and the 3-2-1 crack spread — a measure of refining margins — has…
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