Ulsd futures analysts noted ULSD futures maintain

Analysts noted ULSD futures maintain backwardation for the fifth consecutive week, reflecting strong prompt demand versus future deliveries. This structure often supports short-term price rallies. NYMEX Overview: Petroleum Futures Weaken on Oversupply, US Demand Worries -- OPIS Example: A trader is watching RBOB, ULSD and WTI futures and notes that both RBOB and WTI have just broken higher through a key support, while ULSD has not. The trader believes that the additional buying will also drive ULSD higher, pushing it through resistance, driving a fresh wave of buying. He buys three Micro ULSD futures at 2.295 and sets a limit order to sell it back 15 cents higher. Current ULSD futures show a 1.2% uptick, driven by refinery maintenance reports reducing output. With diesel demand tracking higher in freight sectors, analysts foresee potential resistance at $2.50 if bullish momentum continues.