Gulf Coast, NYH Spot Gasoline Higher on Futures Rally
BURLINGTON, Vt. (DTN) -- Spot market gasoline blends at the Texas Gulf Coast
and in the New York Harbor ranged higher Thursday propelled by a moderate
rebound in benchmark May New York Mercantile Exchange RBOB futures. Cash diesel
fuel values were mixed, drifting lower in the Harbor on a dip in basis and
edged higher at the Gulf on a boost in prompt cash differentials in front of
pipeline scheduling deadlines.
Trading was moderate in both cash market regions.
Wednesday's NYMEX plunge did not go unnoticed by the Organization of the
Petroleum Exporting Countries who generated positive statements concerning the
extension of the six-month production cut scheme by Saudi Arabia and Kuwait who
both intimated the plan would be extended through the end of the year. OPEC and
non-OPEC oil producers are scheduled to meet on May 25 to discuss the pros and
cons involved in extending the agreement.
Russia has not yet publicly committed to prolonging its curbs, and has so
far come up short in reducing its output to agreed levels. Talks between Moscow
and its crude oil producing companies are expected to begin shortly, sources
May NYMEX RBOB futures recovered a small percentage of Wednesday's 5.2cts
plunge settling up 1.15cts at $1.6705 this afternoon. Frontline ULSD futures
fell 0.24cts to $1.5789 gallon at settlement that added to Wednesday's better
than 4.0cts price retreat.
The May NYMEX crude oil contract expired at today's formal session close
down $0.17 at $50.27 bbl, and the June contract will assume the spot month slot
overnight at $50.71 bbl based on today's settlement.
Gulf Coast M2 conventional 9.0-lb. regular unleaded ramped up 1.4cts to
$1.6105 gallon, trading at a 6.0cts May futures discount for 24th cycle
Colonial Pipeline shipment and V2 premium no lead maintained a 17.0cts regrade.
F1 7.8-lb. RBOB moved 1.4cts above its Wednesday DTN closing market range to
$1.6405 gallon, indexed at a 3.0cts MERC discount, and was tracked higher by H1
PBOB that remained at a 16.75cts regrade.
A2 CBOB rambled 1.55cts higher to $1.5330 gallon versus a 13.75cts futures
discount, and high-octane CBOB was tagged at an 18.5cts A2 premium.
New York Harbor 9.0-lb. F2 RBOB was reported sold for prompt Buckeye
Pipeline transport at a 0.85cts MERC discount that boosted spot price by 1.3cts
to $1.6620 gallon, and was heard offered a penny below the MERC for any month
barge loading. H2 PBOB changed hands at a 16.0cts futures premium for prompt
barge lifting that boosted spot price by 1.15cts to $1.8305 gallon.
CBOB was rated at a 10.0cts futures discount for prompt BPL transit, and
premium CBOB was marked 8.5cts over the May futures print.
Ultra-low sulfur 62-grade diesel fuel at the Gulf Coast edged 0.36cts higher
to $1.5554 gallon, trading at a 2.35cts futures discount in front of late day
tender deadlines for Colonial Pipeline's 23rd cycle.
New York Harbor ULSD fell 0.49cts to $1.5714 gallon, offered with options
for prompt barge or Buckeye Pipeline transport at a 0.5cts MERC discount.
G. Bud deGorgue, 1.802.524.1784, firstname.lastname@example.org,
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