Obscure EU storage contract thrust into the spotlight

摘要

London-A relatively obscure financial instrument used to satisfy government-imposed storage obligations in Europe limited the amount of diesel that could be exported to the US during the past winter, despite a wideopen arbitrage between the two regions. The US Atlantic Coast was hit with an unusually frigid and snowy February, which drove the front-month NYMEX ULSD price to a 36 cents/gal premium to ICE gasoil by February 23, from a 6.5 cents/gal premium February 10.