Wall Street Warns About “Perfect Storm” Diesel Crunch: 

  • Goldman’s Daan Struyven Shows Global Diesel Exports Crashing
  • Citi’s Anthony Yuen Warns: Global Diesel Inventories “Below 5YR Minimum“
  • BofA’s Francisco Blanch Warns: “Diesel’s Perfect Summer Storm” Unfolding 
  • Jefferies’ Sam Burwell Warns: Hormuz Shock “Manifesting Itself In Cracks, Not Crude” 

Brent briefly fell below $80 a barrel last week as prospects improved for an Iran-Oman deal to reopen the maritime chokepoint, before rebounding toward $90 as negotiations stalled this week.

By lunchtime Thursday, the front-month US diesel crack spread (HOCL1 on the Terminal) had exceeded the $97 level reached in mid-March, when the US-Iran conflict was just three weeks old, and was closing in on $100. That signals extreme tightness in diesel.

https://www.zerohedge.com/energy/hormuz-shock-manifesting-itself-cracks-not-crude-jefferies-says