Midwest Cash Products Slammed by Broadbased Futures Plunge
7/15 4:49 PM
Midwest Cash Products Slammed by Broadbased Futures Plunge BURLINGTON, Vt. (DTN) -- Midwest open market oil product prices were pummeled Monday by a selloff across the New York Mercantile Exchange oil futures complex. Open market gasoline prices were especially hard hit by a multi-cent plunge in benchmark August RBOB futures, while diesel fuel prices lost ground facing a less severe downturn in NYMEX frontline ULSD futures. Oil futures traders began purging length early in formal session trading and selling gained momentum into the market close this afternoon, following news damage generated by Hurricane Barry, downgraded to a tropical storm after making landfall Saturday, was well below expectations along the Louisiana coastline in tidal surge and total rainfall. August RBOB futures posted a 4.67cts plunge settling at $1.9303 gallon, and the spot month ULSD contract finished 2.85cts lower at $1.9516 gallon. August crude oil futures broke to the downside late morning having traded to a $60.92 bbl intraday high, and finished $0.63 in the loss column at $59.58 bbl. Group 3 V-grade regular suboctane toppled 5.17cts to $1.8528 gallon trading at a 7.75cts August futures discount for offline Magellan Pipeline delivery. A-grade premium no lead maintained a 37.0cts regrade at $2.2228 gallon. Chicago 9.0-lb. suboctane regular plummeted 300pts in basis to a 6.5cts MERC discount that sent spot price into a 7.67cts downward spiral to $1.8653 gallon for third cycle July Wolverine Pipeline specific delivery, or delivery into the Buckeye Complex. RBOB was rated 26.0cts over CBOB, and PBOB at a 62.5cts CBOB premium. X-grade diesel fuel in the Group tumbled 4.1cts to $1.8791 gallon on a 125pts basis pullback to a 7.25cts futures discount. Chicago low sulfur diesel fuel moved 2.35cts below its DTN Friday closing assessment to an implied $1.8616 gallon tagged at a 9.0cts MERC discount for offline Badger Pipeline supply. G.Bud deGorgue, 1.802.524.1784, bud.degorgue@dtn.com, www.dtn.com. (c) 2019 DTN. All rights reserved.