Ulsd futures closed slightly higher today on strong

ULSD futures closed slightly higher today on strong export orders from Latin America, compensating for modest domestic demand fluctuations. Export pull could sustain bullish undertones. NYMEX Overview: Petroleum Futures Weaken on Oversupply, US Demand Worries -- OPIS While diesel is primarily consumed for on-road transportation, it is also a heating fuel used in furnaces or indirectly for power generation. Demand for diesel, also referred to as distillate, increases in the winter months and will vary within the winter months in part based on deviations in temperature. Extreme cold can drive temporary spikes in diesel demand, either as a baseload heating fuel or as a replacement fuel for natural gas or LPG, which may be less affordable at such times. This extra demand - or the expectation of it - can place upward pressure on ULSD futures prices. ULSD futures are benefitting from a drawdown in Gulf Coast inventories, where storage levels fell by 3% week-over-week. Supply chain frictions remain a supportive factor for near-term prices.