New York Diesel Supply Crunch Boosts Premium to Nine-Month High
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A shortage of diesel around New York Harbor and speculation that colder weather will boost heating oil demand has driven the premium for spot deliveries of the fuel to the highest level since March.
Ultra low sulfur diesel has more than doubled its premium in New York versus futures since the beginning of last week. Stockpiles in the mid-Atlantic region that includes New York are at the lowest level in six months. Forecast maps indicate December will end with a chill, with weather patterns that may allow Arctic air to flow into the central U.S. and then get bottled up in the Northeast.