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Midwest Cash Oil Products Plunge on Futures Correction
7/21 4:35 PM
Midwest Cash Oil Products Plunge on Futures Correction BURLINGTON, Vt. (DTN) -- Spot market oil product prices in Chicago and Oklahoma Group 3 took a tumble Friday, pounded by a plunge in benchmark New York Mercantile Exchange August RBOB and ULSD oil futures. Cash trading was on the light side in both Midwest markets and focused on suboctane gasoline grades. Oil service company Baker Hughes, Inc. this afternoon reported a one rig decline in the U.S. oil rig count this week that leaves the total number of oil rigs operating in the United States at 764. So far in 2017, oil drillers have placed 239 rigs into service. The rig count is 393 higher than the corresponding week in 2016. In Canada, drillers added 12 oil rigs to operation, bringing the total to 118 for the week and 70 higher year-over-year. U.S. crude oil production ramped up by 32,000 bpd during the week-ended July 14, and is running 11% above year prior at 9.429 million bpd, according to government data. NYMEX oil futures headed south into today's formal session close that limited gains on the week to fractions for RBOB and ULSD, and sent crude oil to a more intense week-over-week loss. August RBOB futures settled down 4.29cts at $1.5633 gallon, and posted a 0.28cts advance on the week. August ULSD futures fell 2.84cts to $1.5152 gallon, and edged 0.02cts higher this week. September West Texas Intermediate crude oil futures plunged $1.15 to $45.77 bbl at today's settlement, and backtracked $0.77 during the week. V-grade regular suboctane in Group 3 sold at a 7.25cts futures discount for prompt cycle Magellan Pipeline delivery that moved spot price 3.79cts below its Thursday DTN closing market posting to $1.4908 gallon. Premium quality A-grade no lead tumbled in tandem to $1.6809 gallon maintaining a 20.0cts regrade. Chicago CBOB tumbled 4.54cts to $1.4833 gallon trading for early August offline Explorer Pipeline delivery at the equivalent of an 8.0cts August RBOB futures discount. RBOB remained at a 9.0cts CBOB premium and PBOB 32.5cts over CBOB. Group 3 X-grade ultra low sulfur diesel fuel was talked at a 1.25cts MERC premium for prompt offline MPL supply that pared implied spot price by 2.59cts to $1.5277 gallon. Ultra low sulfur diesel fuel in the Windy City backpedaled 2.59cts to a notional $1.4952 gallon indexed 2.0cts below the August ULSD futures print for generic third cycle July delivery. G.Bud deGorgue, 1.802.524.1784, bud.degorgue@dtn.com, www.dtn.com. (c) 2017 DTN. All rights reserved.