Gulf Coast,NYH Spot Oil Products Tumble on Futures Retreat
10/12 5:08 PM
Gulf Coast,NYH Spot Oil Products Tumble on Futures Retreat BURLINGTON, Vt. (DTN) -- Spot market oil product prices in New York Harbor and at the Texas Gulf Coast moved lower Thursday as the two-day rally on the New York Mercantile Exchange ran out of steam and paper prices tumbled into the close of formal session trading. Business in physical oil markets was lackluster, with many traders and marketers in New York City for an industry gathering. Oil futures flipped back to the downside following the release this morning of weekly oil supply data by the U.S. Energy Information Administration. Declines in domestic crude oil and middle distillates were in line with analysts' projections, while the build in commercial gasoline stockpiles was a data surprise. The EIA statistics were at odds with those released late Wednesday by the American Petroleum Institute. EIA reported a 2.7 million bbl drawdown in commercial crude oil stocks following the 3.1 million bbl build shown in the API figures. Crude oil stocks in Cushing, Oklahoma, increased by 1.3 million bbl. Total distillate stocks were drawn down 1.5 million bbl versus a 2.0 million bbl build reported by the API. Distillate demand plummeted by 359,000 bpd, according to government stats. Commercial gasoline also ran contrary to API statistics posting a 2.5 million bbl increase in EIA data versus a decline of 1.6 million bbl in API figures. Implied gasoline demand increased by 239,000 bpd, according to EIA data. U.S. refiners increased utilization by 1.1%, running at 89.2% of capacity last week. NYMEX November RBOB futures settled down 2.6cts at $1.5843 gallon, and the November ULSD contract finished formal session trading 2.06cts lower at $1.7655 gallon. November WTI crude oil futures posted a $0.70 loss settling at $50.60 bbl. Gulf Coast 11.5-lb. M3 regular no lead sold at a 1.95cts November futures premium as prompt trading rolled to Colonial Pipeline's 58th cycle that backed spot price down 2.65cts to $1.6027 gallon. V3 premium unleaded maintained a 9.5cts regrade. A3 CBOB fell 2.35cts below its Wednesday DTN closing market range to $1.5682 gallon on a 58th cycle deal booked at a 1.5cts MERC discount, and D3 premium CBOB was marked at a 10.25cts regrade. F4 13.5-lb. RBOB remained discounted 0.75cts to A3, and H4 PBOB at a 14.75cts RBOB premium. New York Harbor 13.5-lb. F4 RBOB maintained a 3.5cts futures premium for prompt Buckeye Pipeline transport that trimmed spot price by 2.65cts to a notional $1.6182 gallon and sold for Oct.18 barge lifting 2.7cts over the November futures print. CBOB was rated at price parity with RBOB for prompt trade. High-octane grades were each assessed at 14.5cts MERC premiums that trimmed implied cash prices by 2.6cts to $1.7282 gallon. Ultra-low sulfur 62-grade diesel fuel at the Gulf backtracked 2.21cts to $1.7190 gallon, trading at a 4.65cts futures discount for shipment on Colonial Pipeline's 59th cycle. Harbor ULSD sold at MERC level and was reoffered at press time with barge or Buckeye Pipeline transport options that pared spot price by 2.31cts to $1.7630 gallon. G.Bud deGorgue, 1.802.524.1784, bud.degorgue@dtn.com, www.dtn.com. (c) 2017 DTN. All rights reserved.