AdBlue’s affect on Diesel prices

AdBlue shortages is a popular topic.

The shortage of this fluid which is squirted onto the exhaust gases produced by diesel engines (in order to reduce emissions) is expected to affect the trucking (logistics, supply chain etc) industry.

Understandably, the price of Urea continues to scream stratospherically and parabolically higher.

But the price of GasOil (diesel) has declined. This is also understandable as we’d expect fuel to be conserved and truckers buying less diesel as an in kind reaction to AdBlue shortages.

With that said, the main highlight of this post is to show you the volatility of the GasOil price lately.

In the chart below, the first ellipse shows GasOil falling 12% on November 26th and then for the next 4 trading days it has a minimum of a 5% trading range in each day.

Volatility continues for the next 2 weeks.

Then (the second ellipse) this Monday it closes down 5.5% from the previous day.

On the next day (Tuesday), it closes up 5.5%.

This tells you to stay away.

It tells you that some markets are becoming a video game.

It’s a reminder to watch but not play.

December 23, 2021

by Rob Zdravevski

rob@karriasset.com.au

#adblue #diesel