Diesel prices rally substantially
In Germany, UFOP is reporting that prices for partially taxable agricultural diesel are on a firm trend, moving closer to those for biodiesel and almost reaching the level of rapeseed oil. The trend is driven by a massive rise in crude oil prices. The nearby futures price on the NYMEX currently stands at just under the mark of 50 USD per barrel, hitting a eight-month high.
UFOP noted: “The competitive position of biodiesel at the wholesale level has improved over the past few weeks. In other words, standard biodiesel having a potential greenhouse gas emission reduction of around 60 per cent over fossil fuels currently costs 72 euro cents per litre. This is only 7 euro cents per litre more than agricultural diesel. At the beginning of April 2016, the difference still amounted to almost 15 euro cents per litre.
The surge in diesel prices is due to a massive increase in prices for crude oil. According to Agrarmarkt Informations-Gesellschaft mbH (AMI), crude oil prices are driven up by rising global demand combined with declining supply. Rapeseed oil prices in Germany also trend firm based on scarce nearby supply and climbing feedstock prices.”
Category: Fuels
