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Bloomberg
The world over, one mainstream fuel — diesel — has managed to remain a decent profit centre for the oil refining industry at large as the novel coronavirus ravages economies and their wider demand for petroleum products.
Diesel has risen in value relative to crude in recent weeks due to a combination of continued industrial usage and purchasing of a near-identical fuel for stockpiling as a heating oil in Europe.
In addition, there have been curbs in refining to minimise a glut of products like gasoline and jet fuel.
But diesel’s star is starting to fade, with its premium to crude oil recently dropping in trading hubs around the world.
As refiners try to maximise output of the fuel and with only a finite amount of land-based storage, it may be just a matter of time before the market starts to collapse.