Posted 2/18/2024, 3:00:00 PM
Fuel Trading Surges as Geopolitical Events and Weather Tighten Niche Energy Markets
- Trading activity in fuels is surging as listless crude prices push investors to seek opportunities in more niche products
- Fuel markets have been roiled by geopolitical events like attacks in the Red Sea and Ukrainian drone strikes
- Deep freeze in US affected refinery capacity and fuel demand, causing impact on refined products
- Backdrop is robust fuel demand with recovery from pandemic almost complete, tightening supplies
- Market participants expect rising activity in fuels for next few months due to return dispersion across energy sector