By Stephanie Kelly
NEW YORK (Reuters) – U.S. ultra-low sulfur diesel was the latest product refined from to take a hit in its cash market last week, after refiners boosted production in a bid to flee poorer margins for other products more affected by coronavirus fallout.
Refining margins for gasoline and jet fuel have tanked because of decreased demand for transportation fuels as the disease outbreak has forced businesses to close and governments to push residents to avoid travel and public places.
For most of last week, diesel margins held up relatively well, as both trucking and farming, two sectors that rely on diesel, continued operating. But refiners’ move to turn to diesel is starting to cause oversupply in some regions, causing cash prices to fall, market participants said.
Cash prices for diesel in Chicago