Gulf, NYH Spot Product Prices Soar on OPEC Production Cut
12/07 11:34 AM
Gulf, NYH Spot Product Prices Soar on OPEC Production Cut BURLINGTON, Vt. (DTN) -- Spot market oil product prices at the Texas Gulf Coast and in New York Harbor are receiving a massive boost by a surge in New York Mercantile Exchange oil futures on news out of Vienna oil producers approved a cut in crude oil production that is already returning dividends in the form of stronger futures prices. Trading in New York Harbor has been listless, and below recent standards at the Gulf headed into the weekend break. The Organization of the Petroleum Exporting Countries and non-OPEC followers including Russia approved an eleventh hour agreement to reduce crude oil production beginning in 2019 by 1.2 million bpd. Iran was given a pass on its production output with the United States breathing down its neck with potentially crippling sanctions on its crude oil exports. January NYMEX WTI futures were $2.24 higher at press time trading $53.73 bbl. January RBOB futures were posting a 7.21cts advance at $1.5055 gallon at last check, and the spot month ULSD futures contract was up 6.87cts printing $1.9269 gallon. Gulf Coast M4 13.5-lb. unleaded regular has rallied 6.71cts to $1.4905 gallon, trading at a 1.5cts January futures discount for 70th cycle Colonial Pipeline shipment, and A4 CBOB was heard sold at a 7.75cts MERC discount that boosts spot price 6.56cts to $1.4280 gallon for prompt CPL transport. New York Harbor 15.0-lb. RBOB is rated at a 1.65cts MERC premium for weekend barge lifting moving spot price up 6.96cts to an implied $1.5220 gallon. Gulf Coast 62-grade ultra-low sulfur diesel fuel is offered 10.75cts below the January futures print for 70th cycle Colonial Pipeline transit that gives implied flat price a 5.62cts lift to $1.8169 gallon. ULSD in the Harbor is riding the January futures bounce up 6.87cts to a notional $1.9279 gallon, maintaining a fractional MERC premium for prompt barge lifting or Buckeye Pipeline transport. G.Bud deGorgue, 1.802.524.1784, (c) 2018 DTN. All rights reserved.