Diesel deliberations

With the requirement for ultralow-sulfur diesel (ULSD) almost exactly a year away, an alarming trend in recent diesel markets has emerged in the US. Prices have risen significantly and have consistently been above year-ago levels, while inventories are lower.For the week ending May 30, 2005, US on-highway diesel prices-as reported by the US Department of Energy’s Energy Information Administration-averaged $2.16/gal. The year-ago average price was $1.75/gal. In the past 8 months, this price differential has been as high as 70¢/gal.Inventories of 15-ppm sulfur diesel were 1 million bbl on May 27, 2005, a drop from 2.5 million bbl on May 28, 2004. Inventories of 15-500 ppm sulfur ...

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