DIESEL OIL GOES 'STILL-RUNNING', AND IT IS NOT A MEME AGAINDiesel Oil NY Harbor ULSD December 2025 futures contracts are trading around $2.25/gallon, once again above its 52-week average, with recent technical ratings indicating a strong buy.
The market has shown a 4.50% rise in the past 5-Day time span, reflecting bullish momentum.
Fundamental Perspective
Supply: Distillate inventories are 20% below the five-year seasonal average, the lowest since 2022. Refinery utilization is high at 94.7%, leaving little buffer for disruptions.
Demand: Distillate consumption has risen to 3.794 million barrels per day, up 260,000 b/d year-over-year, driven by robust industrial activity and summer travel.
Geopolitics: A U.S.-brokered ceasefire in the Middle East has reduced immediate supply risks, but the situation remains fragile and could quickly change.
Macroeconomic Risks: While fundamentals are bullish, potential U.S. recession risks and data reporting delays add uncertainty. Monitoring GDP growth and manufacturing PMIs is crucial.
Summary
ULSD futures are technically strong and fundamentally supported by tight inventories and robust demand, but traders should remain vigilant for macroeconomic and geopolitical shifts.
--
Best wishes,
@PandorraResearch Team 😎
