🛢 Energy & Commodities mixed · 6–18 months
A what‑if from the future

What if Distillate glut as diesel and jet build together?

Weak freight and travel demand let diesel and jet stocks build simultaneously, swamping the middle of the barrel and dragging crude runs and prices lower; the distillate glut deepens the surplus.

36%
our model probability
over 6–18 months
prediction markets — wisdom of the crowd
loading live odds…
Empirically anchored 36% · 90% range 2–69% · 13 analogues · measured class deflation 44% in 18 mo · 3% held back for the unknown
how we built this number — every step
Measured class rate — deflation ≈0.3895/yr → 44% in 18 mo44%
Analyst prior · editorial share 100% of the class45%
Pooled · weight 68%37%
Crowd — no liquid market
Reserve 3% · no extremizing (×1.0)37%
Published36%

The class rate is measured from our dated, sourced event library (decade-normalized Poisson — the full table is public at base_rates.json). The variant’s share within its class is the analyst’s editorial call, published so you can audit it. A wider range means thinner precedent. Full recipe: methodology · scored at Reality Check.

The butterfly cascade

How this trigger trickles across markets, left → right — the root shock, its first‑order moves, then the ripple effects. Drag any node; tap a market for its real price history.

Resolution timeline — how this probability is moving

Our model's odds (gold) over time vs the crowd's (Polymarket, blue), from the past toward the 6–18 months horizon. Each dot is a real macro event that nudged the probability — green pushed it up, red pushed it down. Tap a dot for the source. The gold path is an illustrative reconstruction anchored to today's estimate — real dated events, not a live re-estimate history.

loading the timeline…

What it would mean

If this plays out, it is a mixed shock. Weak freight and travel demand let diesel and jet stocks build simultaneously, swamping the middle of the barrel and dragging crude runs and prices lower; the distillate glut deepens the surplus. The trigger decomposes into signed root‑shocks — Diesel ▼ · Inflation expectations ▼ · Jet fuel ▼ · Oil demand ▼ — which propagate through our causal graph to the markets below.

If it happens — the markets it would move

Biggest moves first. Projected moves are cascade-model priors; hist A–B% = what comparable past events actually did (measured abnormal returns), and model prior · unmeasured marks markets with no analogue backing yet. Tap any market for its price history.

MarketClassProjected move
1United Airlines UAL 📈 chartEquity▲ +0.3%
hist -7.43–+10.65% · other way +70.35% (n=5)
2Delta DAL 📈 chartEquity▲ +0.2%
hist -3.33–+6.9% · other way +33.73% (n=5)
3WTI crude CLon Hyperliquid 📈 chartCommodity▼ -0.2%
hist -4.31–+5.56% · other way -9.7% (n=5)
430y Treasury yield DGS30 📈 chartRate▼ -2bp
hist -3.84–+4.2% · other way +21.1% (n=12)
5Gold XAUon Hyperliquid 📈 chartCommodity▲ +0.1%
hist -0.75–+1.54% · other way -4.49% (n=5)
610y Treasury yield DGS10 📈 chartRate▼ -2bp
hist -3.54–+2.23% · other way +15.7% (n=12)

Probable recommendation

If the scenario above plays out, the probable cross‑asset positioning → a scenario‑conditional read, not personalized investment advice
For a common-man portfolio: Mixed for a typical portfolio — the move is more about rotation than direction. Favour the winners over the losers below rather than net exposure.
Also moves (not yet on Hyperliquid): United Airlines +0.3% · Delta +0.2% · 30y Treasury yield -2bp · 10y Treasury yield -2bp

Historical precedent — what analogous events actually did

Across 13 analogous events (overlap‑weighted), as abnormal returns — market beta stripped, so it's the event's own effect, not the market backdrop. Shown at 20 days (persistent) and 5 days (immediate); ↺ fades = the two horizons disagree. Confidence = consistency × sample × significance.

Henry Hub natural gas hits a 25-year low amid record US production 2024-11 Waha hub natural gas prices crash to record negative on Permian glut 2024-08 WTI crude futures settle negative as demand collapses 2020-04 Oil collapses from $147 to the $30s as the GFC craters demand 2008-12 Niger coup d'etat 2023-07 PJM grid emergency during Winter Storm Elliott 2022-12 Texas grid failure during Winter Storm Uri 2021-02 Norilsk Nickel Arctic diesel spill 2020-05 Henry Hub natural gas spot price peaks during 2008 commodity boom 2008-07 Platinum hits all-time record near $2,290 on South African power crisis 2008-03 South Africa Eskom power emergency spikes platinum/PGMs 2008-01 Amaranth Advisors natural-gas blowup 2006-09 Northeast blackout cascading grid failure hits ~55 million 2003-08
AssetHistory saysAbnormal (20d · 5d)HitnConfidencevs cascade
DAL DALLONG+6.7% · 5d +2.1%73%11 0.43✓ matches cascade
Volatility VIXSHORT-7.3% · 5d -4.9%71%13 0.30·
Gold XAULONG+1.4% · 5d +0.3%65%13 0.27✓ matches cascade
30y yield DGS30LONG+6bp · 5d +2bp65%13 0.19⚠ differs
UAL UALLONG+11.0% · 5d -0.2% ↺ fades56%12 0.12✓ matches cascade
CL CLLONG+6.1% · 5d +0.5%53%13 0.05⚠ differs
10y yield DGS10LONG+3bp · 5d +2bp29%13 0.00⚠ differs
US dollar DXYSHORT-0.1% · 5d -0.4%47%13 0.00·
Bitcoin BTCLONG+9.7% · 5d -2.0% ↺ fades50%7 0.00·
High-yield credit HYGLONG+2.0% · 5d -0.5% ↺ fades47%11 0.00·

Methodology. Probability and impact are anchored to history and scored against what actually happens — wins and losses, in public, at Reality Check. Crowd odds live from Polymarket & Kalshi. By Vikas Singh, Quantitative Strategist. Updated 2026-07-03.