Why is the price of diesel still falling when crude oil is actually going up? Here is my list of answers:
- When prices are declining, there is a long lag between crude costs falling and diesel matching. When prices are rising, there is no lag. (Up like a rocket – down like a feather)
- The U.S. became a net exporter of oil and oil products for the first time since at least 1973 (Source: Energy Information Administration)
- OPEC and Russia cut production by 1.2 MM barrels per day
- [Program (computerized) trading] is modifying volume and liquidity,” said the Chief Investment Officer of Arctic Blue Capital Ltd. “What would have happened in one week is happening in one day.”
- Prices are down while volatility is up – see the accompanying graphs from the Wall Street Journal