Market uncertainties accompany diesel rule

Although implementation of the ultralow sulfur diesel rule (ULSD) may provoke a tight diesel market in the short term, refiners will increase supply to meet demand in the long term, says a recent report by the US Energy Information Administration.The EIA conducted a study to analyze the effects on diesel price and supply of reducing sulfur in US highway diesel by 97%, a final rulemaking which was signed by former Pres. Clinton in December 2001.The final rulemaking on Heavy-Duty Engine and Vehicle Standards and Highway Diesel Fuel Sulfur Control Requirements aims to reduce nitrogen oxides (NOx) and particulate matter (PM) emissions from diesel-run engines and vehicles. Starting June 1, 200...

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