Source: Bloomberg Gulf Coast Conventional
Gasoline, No. 2 Heating Oil; NW Europe 0.2% Heating Oil and Premium
SDistillate in general – not just diesel– has been showing
SHeating oil prices on both sides of the Atlantic exceeded
gasoline prices for much of 2005 and for a good part of 2006. We maybe seeing
signs of a fundamental shift in the relative pricing of these primary light
refined products due to tightening of the distillate markets in the Atlantic
Basin in particular.
SWe have all been watching the growth in diesel demand, and
have known that at some point, price for diesel would have to rise relative
to gasoline to produce the incentives needed to shift refinery investment
towards more distillate production.Is
this the beginning of that situation?