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
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, email@example.com, www.dtn.com. (c) 2019
DTN. All rights reserved.