A second day of surging mineral oil prices has dragged gasoil’s discount to benchmark Chicago bean oil back below $130/t this afternoon, the lowest the spread has traded since mid-June.
Gasoil has reacted bullishly as Thursday’s US GDP data detailing an unexpectedly strong 3.7% growth rate in the second quarter has pushed China’s economic woes out of the headlines. Demand signals are showing a persistent upswing in response to cheaper fuel, with haulage data showing a 2.8% climb in seasonally adjusted truck tonnage in July. Improved US retails sales, factory output and housing starts have all contributed to surging summer freight mileage.
Beans and bean oil have struggled to keep up with gasoil’s 8% gain since Thursday’s close, despite strengthening export data. Cumultative sales of soybeans to unknown destinations have this week hit 460,000t, according to USDA.