MARKET PREVIEW: Futures Gain on Lower Cushing Crude Stocks
NEW YORK (DTN) -- New York Mercantile Exchange spot-month oil futures
climbed to one-week highs early Friday after finding support in risk-on
appetite. Declining crude oil stocks at Cushing, Oklahoma was cited behind the
overnight futures bounce. The Energy Information Administration reported
midweek that crude inventories at Cushing, the delivery point for NYMEX West
Texas Intermediate, plunged by a more-than-expected 3.6 million bbl to a 32.7
million bbl better than three-year low during the week-ended Feb. 9.
Cushing crude stocks have fallen to 50% of their level versus a year ago,
and are expected to continue falling for the rest of this month to below 30
million bbl, said Andy Lipow, president of Lipow Oil Associates in Houston.
Overseas, the Organization of Petroleum Exporting Countries said in its
Monthly Oil Market Report issued earlier this week that based on secondary
sources, production by its 14 members averaged 32.3 million bpd in January,
down 8,000 bpd versus December.
"While production mainly decreased in Venezuela and Angola, partially offset
by Iraq, Saudi Arabia and Libya," said the report.
Venezuela's production fell by 47,000 bpd to 1.6 million bpd while Angola's
output fell 11,000 bpd to 1.615 million bpd, according to the report.
Saudi Arabia's output rose 23,000 bpd to 9.977 million bpd while Iraqi
production increased by 30,200 bpd to 4.435 million bpd. Libyan output also
improved by 21,000 bpd to 978,000 bpd.
A Joint Ministerial Monitoring Committee, made up of five OPEC members and
Russia, will meet this weekend to review compliance with their ongoing
production cuts of 1.8 million bpd.
Houston-based oil services firm Baker Hughes will also release its weekly
oil rig-count report later this afternoon.
Futures at 8:00 AM ET
NYMEX Contract Last Change High Low
WTI Mar. $61.58 $0.24 $61.89 $61.30
WTI Apr. $61.20 $0.29 $61.75 $61.17
ULSD Mar. $1.9046 $0.0130 $1.9112 $1.8929
ULSD Apr. $1.8928 $0.0138 $1.9093 $1.8902
RBOB May $1.7311 $0.0007 $1.7491 $1.7299
RBOB Apr. $1.9115 $0.0033 $1.9289 $1.9099
Brent Apr. $64.76 $0.43 $64.95 $64.39
Brent May $64.44 $0.44 $64.60 $64.07
SPOT PRODUCT MARKETS
Spot market finished oil product prices in primary U.S. cash trading arenas
moved higher Thursday as benchmark RBOB and ULSD oil futures maintained
corrective upside trajectories.
Los Angeles CARBOB soared over 11cts in spot price trading at a 13cts March
futures premium, this despite regional gasoline supply sits at record highs.
San Francisco CARBOB improved a penny in basis and 3.28cts in spot price, and
suboctane regular tracked the futures advance higher in the Pacific Northwest.
Gasoline trading east of the Rockies lacked the enthusiasm seen in Los
Angeles. New York Harbor and Gulf Coast RBOB prices rode the March futures
rally higher, while Group 3 CBOB basis held steady at a 2.0cts futures premium,
and improved a penny in Chicago rated at an 11.5cts March futures discount.
CARB ULSD in LA gained 125pts in cash differential and 1.97cts in flat
price, and posted a marginal gain in the Bay tagged at MERC level for prompt
trade. ULSD in the PNW edged 0.47cts above its Wednesday closing range marked
6.0cts over the March print.
ULSD prices in the Harbor, Gulf and Chicago marginally outpointed the
0.72cts futures bounce, and finished with a moderate 0.47cts gain in Group 3.
NEW YORK HARBOR GULF COAST
Heating Oil $1.7994 Heating Oil $1.6894
ULS Heating Oil $1.8244 ULS Heating Oil $1.7909
ULSD $1.9054 ULSD $1.8634
Jet, 54-grade $1.8644 Jet, 54-grade $1.8184
Conventional Regular $1.7711 Conventional Regular $1.7231
RBOB $1.7256 Conventional Premium $1.8706
PBOB $1.8761 RBOB $1.6936
CBOB Regular $1.7261 PBOB $1.8211
CBOB Premium $1.8911 CBOB Regular $1.6886
CBOB Premium $1.7961
ULSD $1.8994 CHICAGO
Jet $1.8769 ULSD $1.8794
Suboctane Gasoline $1.7511 Jet $1.9044
Conventional Premium $1.9674 CBOB Regular $1.6161
Conventional Premium $1.8311
LOS ANGELES RBOB $1.6811
ULSD $1.8844 PBOB $1.8911
CARB ULSD $1.9344
Conventional Regular $1.8511 PORTLAND
Conventional Premium $2.0361 ULSD $1.9644
CARBOB Regular $1.8611 Jet $1.9194
CARBOB Premium $2.0361 Suboctane Gasoline $1.8411
Conventional Premium $2.1861
CARB ULSD $1.9044
Conventional Regular $1.7061
Conventional Premium $2.0061
CARBOB Regular $1.7511
CARBOB Premium $2.0111
George Orwel, 1.718.522.3969, firstname.lastname@example.org, www.dtn.com. (c) 2018
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