Midwest Spot Oil Products Rally on Fresh Futures Flurry

    

   BURLINGTON, Vt. (DTN) -- A third straight advance in benchmark oil product 
futures on the New York Mercantile Exchange has lit a fire under basis 
calculations in Chicago and Oklahoma Group 3 Thursday morning, with no 
discernable resistance in the RBOB complex below $1.5360 standing in the way of 
a continuing seasonal recovery. 

   Trading has been light in Midwest cash markets this morning.

   Wednesday's weekly oil supply survey by the Energy Information 
Administration showing domestic crude oil stocks at a 15-month high remains of 
little interest among futures market bulls, who continue to place wagers that 
crude oil production cuts and the resolution of the U.S.-China trade dispute 
will generate greater oil demand on revived strength in global economies. 

   March WTI futures at press time were $0.40 higher printing $54.30 bbl coming 
off a $53.08 bbl intraday low. March RBOB futures were 3.47cts on the plus side 
trading $1.4998 gallon at midday, and the March ULSD contract was 2.29cts 
higher at $1.9617 gallon.

   Chicago 13.5-lb. CBOB traded 4.0cts over the MERC for second cycle delivery 
into the Buckeye Complex powering spot price 6.97cts above its day prior DTN 
closing market range to $1.5398 gallon. Windy City suboctane sold down to a 
0.5cts MERC premium late Wednesday for West Shore Pipeline specific delivery. 

   V-grade 13.5-lb. suboctane regular in Group 3 has ramped up 2.97cts to an 
implied $1.5298 gallon, rated 3.0cts over the March futures print for offline 
Magellan Pipeline delivery. 

   Chicago ultra-low sulfur diesel fuel is 2.29cts higher at midday printing 
$1.8807 gallon, tagged for generic pipeline delivery at a 5.0cts futures 
discount. 

   Group 3 X-grade ULSD is up 2.04cts to an implied $1.9217 gallon, assessed at 
a 4.0cts MERC discount for prompt MPL offtake.

   G. Bud deGorgue, 1.802.524.1784, bud.degorgue@dtn.com, www.dtn.com. (c) 2019 
DTN. All rights reserved.