Thanks

J

Thanks

J

Thanks

J

OK. My view based on historical trends is that that is the kind of structural switching that takes place over a much longer period of time. That outsized spread that the world experienced between Diesel and gasoline would need to be sustained for longer.

This is very tricky stuff to analyze–specifically–consumer trends in diesel vs petrol autos keying off price trends. I generally don't attempt to figure it out, and leave it to others.

What I do pay attention to however is that distillate remains the flexible fuel especially for developing nations as it's a lot easier on their Refining complexes.

HTH

G

OK. My view based on historical trends is that that is the kind of structural switching that takes place over a much longer period of time. That outsized spread that the world experienced between Diesel and gasoline would need to be sustained for longer.

This is very tricky stuff to analyze–specifically–consumer trends in diesel vs petrol autos keying off price trends. I generally don't attempt to figure it out, and leave it to others.

What I do pay attention to however is that distillate remains the flexible fuel especially for developing nations as it's a lot easier on their Refining complexes.

HTH

G

At least in the UK, the decision to buy a car that runs on diesel or “petrol” is generally economic. Presumably the economic rationale for buying a diesel rather than a petrol car has now diminished as petrol prices have come down. I hope that clarifies my original point.

At least in the UK, the decision to buy a car that runs on diesel or “petrol” is generally economic. Presumably the economic rationale for buying a diesel rather than a petrol car has now diminished as petrol prices have come down. I hope that clarifies my original point.

Thanks!

Thanks!

I don't understand this framing. I am not aware of any ability the world has to switch quickly between diesel and gasoline.

My view is as follows: the world chose diesel years ago, and the world runs on diesel. It's only the US that is still very concentrated on gasoline.

I suspect I am unable to truly answer your question because I don't understand it or the assumptions in it. I certainly agree industrial demand for diesel has dropped recently. I also hold the view that here in the US, we have seen a 3rd year of switching away from Heating Oil to NG on the East Coast.

For me it's really simple: Brent has been higher bid than NYMEX because NYMEX still has antiquated pricing off of inventories at Cushing OK, and Brent tells the story better of global supply/demand.

HTH.

G