Diesel Continues on a Tear to the Upside
On 15 September 2026, the October 2026 Heating Oil NY Harbor Ultra-Low Sulfur Diesel contract, HOV6, closed at $5.2535, up .2920 or 5.89%!
Of course, the fundamental picture is quite bullish, given reports of VLCC tanker hitting a mine in the Strait of Hormuz, the Saudi East-West pipeline bypassing the Strait being struck by the same Houthi rebels who now control the Bab al-Mandab Strait in the Red Sea as well as Russia and Ukraine continuing to strike infrastructure, including Russian refining.
On the horizon are central bank decisions in the US as the FOMC makes its announcement as well as Bank of England and Bank of Japan on Thursday. Also this morning, at 9:30 Central time, featured the EIA Petroleum Status Report.
Traders in energy markets such as this will be eyeing any developments in these geopolitical conflict zones as well as the reports today which may create volatility and trading opportunities.
While the market is subject to a reversal in current circumstances, it is unlikely these fundamental factors dissipate anytime soon.
Also a factor is stretched refining capacity and winter, ahead of a time when refiners typically change their blends for the colder months.
Given the disruptions to supply and tightness in refining capacity, further bullish price action and positioning may be warranted.
Speculative traders as well as end user hedgers may look for today’s EIA report and the week’s rate decisions to create volatility and opportunities to re-position.
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Michael B. O’Donnell
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