BlockBeats reported on Oct. 10 that the U.S. Treasury Department’s Office of Foreign Assets Control issued General License No. 135 on Oct. 9 Eastern Time, allowing transactions related to the sale, delivery and import of Russian-origin diesel through April 7, 2027.
Trump also announced a phased increase in diesel supply totaling about 4.8 million tons. Russia, however, has not confirmed specific shipment volumes or a delivery timetable.
Whale expands short diesel position on Hyperliquid
According to TradingBeats, a whale on Hyperliquid has been holding a short-diesel, long-WTI structure, with combined unrealized profit on the two legs at about $14,700.
- Diesel HO: a 10x isolated short of 252,714 contracts, worth about $1.1432 million, with an average entry of $4.5696 per gallon, unrealized profit of about $11,600, and an estimated liquidation price of $5.0275.
- WTI crude CL: a 20x cross-margin long of 11,400.798 contracts, worth about $1.0334 million, with an average entry of $90.368 per barrel and unrealized profit of about $3,095.
TradingBeats said the whale shorted another 232,034 HO contracts today, worth about $1.0586 million, adding to the diesel short. The long WTI leg had already been established earlier, and no trade was seen in that position during the same period.
Spread narrows as diesel weakens against crude
The position points to a view that diesel will weaken relative to crude, with the trade apparently targeting a pullback in refined-product premiums. The diesel-crude spread has already narrowed.
S&P Global data showed the NYMEX front-month ultra-low sulfur diesel crack spread versus WTI fell by $6.45 per barrel from earlier in the day to $96.80 per barrel.
As of publication, HO was at $4.5235 per gallon, down about 4.57% over 24 hours, while CL was at $90.64 per barrel, up about 0.70%. Based on the quoted prices, the reference spread between the two contracts narrowed from about $109.07 per barrel 24 hours earlier to $99.35 per barrel, a decline of about $9.72, or roughly 8.91%.
Supply expectations improve, but refinery constraints remain
Outside the supply relief narrative, refinery constraints have not disappeared. Dallas Fed researchers said on Oct. 8 that damage to global refining capacity and lower inventories could keep refined-product premiums elevated even after transport through Hormuz recovers. Permission to trade Russian diesel, they said, does not mean physical supply has returned to normal.