Diesel Hits Record $6.51 as Export Ban Momentum Builds
USOI is trading near its 52-week low of $41.9 (11% above the low).
Summary
U.S. retail diesel prices set a new record at $6.51/gal, up from $6.0556 on September 11, with California at $8.42. Senator Grassley and other Midwest Republicans are pushing for a diesel export ban, though the administration has not embraced it. Analysts warn a ban could backfire by reducing refinery run rates and raising prices for gasoline and jet fuel. Crude oil futures fell 4.5% to $95.78/bbl on easing Middle East supply concerns and possible U.S.-Iran talks. For USOI, an ETN tied to crude oil covered calls, the drop in crude prices is a headwind, but the diesel price spike and export ban debate add volatility.
At the time of this announcement, USOI was trading at $46.57 on NASDAQ in the Energy & Transportation sector. The 52-week trading range was $41.90 to $61.30. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Seeking Alpha.