Huo Xing Finance reports: On October 9, Eastern Time, the U.S. Department of the Treasury’s OFAC issued General License No. 135, permitting sales, deliveries, and imports of diesel products of Russian origin until April 7, 2027. Trump also announced a phased increase in diesel supply, totaling approximately 4.8 million metric tons; however, Russian authorities have not yet confirmed specific shipment volumes or delivery schedules. According to TradingBeats monitoring, a whale on Hyperliquid holds a “short diesel, long U.S. crude” position with a combined unrealized profit of approximately $14,700: - Diesel HO: 10x isolated short of 252,714 contracts, valued at ~$1.1432 million, with an average entry price of $4.5696/gallon, unrealized profit of ~$11,600, and estimated liquidation price at $5.0275; - WTI Crude CL: 20x cross long of 11,400.798 contracts, valued at ~$1.0334 million, with an average entry price of $90.368/barrel, unrealized profit of ~$3,095. Today, the whale added to its short position by selling 232,034 HO contracts (~$1.0586 million), further expanding its diesel short exposure; the long WTI position was previously established with no new trades recorded during the same period. The positioning suggests an expectation that diesel will weaken relative to crude oil, potentially betting on a compression of the refined product premium. The spread between diesel and crude has narrowed. S&P Global data shows that the NYMEX crack spread for ultra-low-sulfur diesel against WTI decreased by $6.45/barrel to $96.80/barrel compared to earlier today. As of publication: - HO is trading at $4.5235/gallon, down ~4.57% over 24 hours; - CL is trading at $90.64/barrel, up ~0.70%. Based on calculations, the reference spread between the two contracts has narrowed by approximately $9.72/barrel (or 8.91%) from $109.07/barrel 24 hours ago to $99.35/barrel. Beyond expectations of improved supply, refinery constraints remain. Researchers at the Dallas Fed noted on October 8 that global refining capacity losses and declining inventories may keep refined product premiums elevated even after the resumption of transport through the Strait of Hormuz; approval of Russian diesel trades does not imply that actual supply has returned to normal levels.
U.S. Approves Russian Diesel Trade, Whale Adjusts HO-CL Spread Position
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Summary
On October 9, 2026, the U.S. Treasury’s OFAC issued General License No. 135, permitting Russian diesel trade until April 7, 2027. Trump announced a phased increase of 4.8 million tons, though Russia has not confirmed details. A whale on Hyperliquid adjusted its position, increasing a short HO position by 232,034 contracts, worth $1.06 million, while maintaining its long CL position unchanged. The HO-CL spread narrowed to $96.80 per barrel. HO fell 4.57% to $4.5235 per gallon, while CL rose 0.70% to $90.64 per barrel. Position sizing remains critical as market dynamics shift.
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