Another Dramatic Day for Diesel Prices

On January 28, 2014 by TradingDesk

Monday was another dramatic day for diesel prices, with prompt month ULSD futures hitting a 6 month high at $3.18 in the morning, only to crumble during afternoon trade, wiping out more than a dime in value and ending the day just above $3.08. Although forward ULSD contracts have not reacted as sharply to the record-setting cold snap wreaking havoc on supplies of various heating fuels across the US, they also showed sharp reversals on the day with 5-7 cent drops throughout the session.

While diesel values have been grabbing the headlines, RBOB gasoline futures stalled out at their 100 day moving average for the 4th trading session in a row, and ended the day with heavy selling. Both the February and March contracts are now standing just a few cents away from the pivotal $2.60 level. If that support breaks, we should see another 10 cent drop in gasoline prices near term.

CLICK HERE for a PDF of today’s chart

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