|SAs expected, European low sulfur diesel has
been commanding a premium over heating oil.†
That differential has averaged about 13 cents per gallon over the past
year when Europeís 50 ppm requirement took effect.
|SIn the U.S., New York Harbor diesel spot
values have averaged about 4 cents per gallon over heating oil.
|SThe high European prices for ultra-low sulfur
diesel likely helped to pull other distillate fuel prices up as well.
|SThe question is whether the European
differential is being driven more by transition issues than by longer term
factors.† Will the U.S. see these kinds
of price differences?† Or will the U.S.
ability to supply ultra-low sulfur diesel help to ease the price difference
and result in lower differentials between heating oil and diesel† fuel?