Midwest Spot Products Mixed in Front of API Oil Data
BURLINGTON, Vt. (DTN) -- Midwest spot market oil product prices moved mixed
Tuesday despite a third consecutive rally in New York Mercantile Exchange oil
Declines in diesel fuel basis sent Chicago ultra-low sulfur diesel fuel into
the red zone, and a steep downside adjustment in the Group 3 high-octane
regrade fueled a better than penny retreat in A-grade premium.
Bulk trading was active in the Group this afternoon, and flat in Chicago in
front of the release of weekly oil supply data late afternoon by the American
The API numbers were supportive for crude oil, with domestic stocks drawn
down 3.5 million bbl, while the 403,000 bbl gasoline decline was less than
expected, and the 1.8 million bbl distillate build a data surprise.
The September West Texas Intermediate NYMEX crude oil contract expired at
the close of formal session trading posting a $0.13 advance at $56.34 bbl.
October WTI paper settled down a fraction at $56.13 bbl, where it will move to
the spot month slot in aftermarket trading this evening.
September ULSD futures ramped up 2.12cts to $1.8543 gallon at settlement,
and the frontline RBOB contract climbed 1.67cts to $1.6811 gallon.
Chicago ULSD fuel took a 0.63cts hit down to $1.7868 gallon, tumbling 275pts
in basis to a 6.75cts MERC discount for third cycle August generic pipeline
Group 3 X-grade diesel fuel rallied 2.07cts to $1.8023 gallon on a deal
closed at a 5.20cts September futures discount for prompt offline Magellan
V-grade 9.0-lb. Group 3 CBOB edged up 0.67cts to $1.6361 gallon, backing off
a penny trading at a 4.50cts MERC discount for prompt MPL delivery, and A-grade
high-octane unleaded no lead fell 1.33cts to $1.8561 gallon slipping 200pts to
a 22.0cts regrade.
Suboctane 9.0-lb. regular in Chicago was rated at a 5.25cts futures discount
for prompt Wolverine Pipeline offline supply, giving implied flat price a
1.92cts lift to $1.6286 gallon.
G.Bud deGorgue, 1.802.524.1784, firstname.lastname@example.org, www.dtn.com. (c) 2019
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