California Spot Gasoline Up on Basis, Futures; PNW Mixed
NEW YORK (DTN) -- Spot gasoline prices in California ended sharply higher
late Friday and diesel gained while oil products in the Pacific Northwest
market saw mixed price action, with its suboctane trimming early losses while
diesel in Portland edged higher.
The cash market's gains were underpinned by stronger basis, with higher oil
futures on the New York Mercantile Exchange providing an assist.
A wire report earlier this morning showed a hydrotreater at Andeavor Corp.'s
Carson refinery remained offline, which may have supported cash values.
The market transitioned to trading product for October delivery after
trading for September delivery was wrapped up on Thursday in the two California
October scheduling is now quoted against benchmark November RBOB futures,
with the transition pushing the basis up sharply. November RBOB futures closed
trading at a 4.23cts discount to the October contract. The November ULSD
futures settled at a 0.77cts discount to October contract.
In late trade, NYMEX October RBOB futures were up 2.46cts at $1.6684 gallon
settlement, with the November contract 1.95cts higher at $1.6261 gallon.
October ULSD futures eked a 0.10cts gain to $1.8163 gallon settlement, with the
November contract inched up 0.12cts at $1.8086 gallon.
In cash trade, October L.A. CARBOB traded at 12.0cts premium to the November
RBOB futures contract. Spot price jumped 8.23cts to $1.7461 gallon.
In the Bay Area, October CARBOB traded at a 5.0cts premium to the Los
Angeles basin and spot price advanced 8.23cts to $1.7961 gallon.
In the Pacific Northwest, September suboctane traded last at 4.75cts premium
to October RBOB futures, reflecting a big decline. This market has been
volatile in the past two days. The spot price declined by 3.79cts to $1.7159
In distillate trade, October ULSD and CARBOB ULSD in L.A. traded at 12.5cts
premium to November ULSD futures. Spot price gained 0.12cts to $1.9336 gallon.
October CARBOB ULSD in L.A. in the Bay area was last seen at a 13.0cts
November ULSD futures premium, up about 3.75cts on the basis. September ULSD in
Portland was seen at a 24.0cts premium to October ULSD futures.
George Orwel, 1.718.522.3969, email@example.com, www.dtn.com. (c) 2017
DTN. All rights reserved.