Commodities
A Weakening Diesel Market Is Becoming a Problem for Oil
- Timespreads in Europe, Asia and the US slump into contango
- Demand has declined seasonally but also year-on-year
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The global diesel market is deteriorating, a concerning economic signal and food for thought for bullish oil traders.
In Europe, the US and Asia, futures markets have slumped into what’s known as contango whereby more immediate prices don’t command premiums. It’s generally viewed as a sign of weakness.