Transatlantic Diesel Spread Surges as Winter Storm Disrupts US
A gas flare at the ExxonMobil Corp. Baytown refinery in Baytown, Texas on Jan. 26.
Photographer: Antranik Tavitian/BloombergUS diesel futures are surging ahead of benchmark European contracts as a winter storm, followed by continued frigid temperatures, piles pressure on the country’s fuel market.
New York Harbor diesel’s premium to European futures surpassed 40 cents a gallon on Monday, the highest level in over three years and continues to hover around that marker, according to fair value data compiled by Bloomberg. The huge storm has impacted some US refinery operations as the icy temperatures support demand for heating oil, a diesel-type fuel.