Gulf, NYH Oil Products Take Flight on Futures Rally
7/20 5:20 PM
Gulf, NYH Oil Products Take Flight on Futures Rally BURLINGTON, Vt. (DTN) -- Spot market oil product prices at the Texas Gulf Coast and in New York Harbor were provided a significant boost Friday afternoon by a week-closing rally on the New York Mercantile Exchange oil futures complex. Trading in physical markets was a victim of the summer doldrums with a number of spot market traders opting to start the weekend a day early. Oil services provider Baker Hughes this afternoon reported the number of active oil rigs in the United States fell by five this week to an 858 count. Deployments now range 94 above the comparable year prior period, and are up 111 rigs versus similar timeframe in 2017. The U.S. Energy Information Administration reported Wednesday that domestic crude oil producers set the output bar at an 11.0 million bpd record high during the week-ended July 13. Current production is 1.573 million bpd above the comparable year prior period, and is 16.8% higher on a four-week average versus same four-week span in 2017. The U.S. is a whisker shy of top global producer Russia that is reportedly pumping at an 11.2 million bpd rate. The latest futures data from the Commodity Futures Trading Commission showed funds aggressive sellers of NYMEX crude oil and finished oil products during the week-ended Tuesday (7/17). Money managers reduced net market length in West Texas Intermediate futures by 38,954 contracts, sold 8,060 RBOB futures and liquidated 16,574 long positions in NYMEX ULSD oil futures. The August WTI futures contract expired at today's regular market close up $1.00 at $70.46 bbl, and finished the week posting a $0.55 loss. September NYMEX crude oil edged $0.02 higher to $68.26 bbl at settlement, and hung a $1.72 loss in the books for the week. August RBOB futures rallied 2.55cts to $2.0690 gallon at settlement, and tumbled 3.77cts this week. ULSD oil futures for August NYMEX delivery backtracked 2.90cts on the week, and finished today's formal trading session up 1.43cts at $2.1044 gallon. Gulf Coast conventional regular no lead climbed 2.2cts higher to $2.0025 gallon trading on the transition to Colonial Pipeline's 41st cycle at a 6.65cts August futures discount, and conventional V2 premium posted a 3.0cts advance to $2.1490 gallon trading 8.0cts over the August futures print for prompt cycle CPL consignment. A2 9.0-lb. CBOB changed hands 11.0cts below the MERC for shipment on CPL's 41st cycle that powered spot price 2.45cts above its Thursday DTN closing market range to $1.9590 gallon. F1 7.8-lb. RBOB rode the futures rebound up 2.55cts to a notional $2.0430 gallon maintaining a 2.6cts August futures discount for prompt CPL transport. Conventional M2 unleaded regular in New York Harbor rode a 50pts basis gain up 3.05cts to $2.0490 gallon trading for offline 36th cycle CPL delivery at a 2.0cts futures discount. F2 9.0-lb. RBOB was reported sold to prompt barge 1.5cts over the MERC that boosted spot price 2.55cts to $2.0840 gallon, and traded for any month timing at a 0.9cts August futures premium. Gulf Coast 62-grade ultra-low sulfur diesel fuel ramped up 1.58cts to $2.0644 gallon trading at a 4.0cts futures discount for 41st cycle CPL shipment, and undyed 77-grade heating oil soared 3.43cts to $1.9544 gallon on a 41st cycle CPL deal booked at a 15.0cts August futures discount. A deal closed at a 0.25cts futures discount for an offline CPL delivered batch of ultra-low sulfur diesel fuel in the harbor boosted spot price 1.03cts to $2.1019 gallon. G. Bud deGorgue, 1.802.524.1784, www.dtn.com. (c) 2018 DTN. All rights reserved.