Midwest Oil Products Climb after EIA Stock Data Release

    

   BURLINGTON, Vt. (DTN) -- Open market oil product prices in Midwest markets 
are higher at midday with Chicago RBOB a standout, plummeting in basis on the 
roll to last cycle May pipeline deliveries. 

   Bulk trading has been light in Group 3 and Chicago on the surge in benchmark 
futures against a mostly neutral weekly oil storage survey conducted and 
released this morning by the U.S. Energy Information Administration. 

   Midwest gasoline supply tumbled 800,000 bbl last week to a 4.9 million bbl 
2018 deficit, and dropped 1.1 million bbl in nationwide gasoline reserves. 
Commercial distillate stockpiles edged up 84,000 bbl during the week-ended May 
10, and increased 600,000 bbl to a 4.2 million bbl year-over-year surplus in 
PADD 3. 

   Domestic crude oil storage levels increased 5.4 million bbl, and 1.8 million 
bbl in Cushing, Oklahoma as part of the overall mix. 

   Group 3 9.0-lb. V-grade suboctane regular has improved 25pts in cash 
differential, trading for offline Magellan Pipeline delivery 7.5cts below the 
June RBOB futures print that powers spot price 4.46cts above its Tuesday DTN 
closing market assessment to $1.9438 gallon. 

   Chicago 9.0-lb. CBOB has eased 200pts to a 2cts June futures premium for 
third cycle May pipeline trade, giving spot price a 2.21cts lift to a notional 
$2.0388 gallon. RBOB has plunged 13cts to a 25cts CBOB premium on the cycle 
roll on estimates current under supply conditions will not persist as refiners 
complete maintenance programs and return to full rates.

   U.S. refiners increased usage by 1.6% running at 90.5% of capacity last 
week, EIA reports. 

   Chicago ultra-low sulfur diesel fuel has ramped up 75pts to a 1.25cts 
futures premium for offline third cycle delivery, moving spot price up 3.97cts 
to an implied $2.1036 gallon.

   X-grade ULSD in Group 3 is down 50pts to a 3.75cts June futures discount for 
prompt cycle Magellan Pipeline delivery, positioning spot price up 2.72cts at a 
notional $2.0536 gallon. 

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