Midwest Oil Products Soar on OPEC Fueled Futures Rally
12/07 12:29 PM
Midwest Oil Products Soar on OPEC Fueled Futures Rally BURLINGTON, Vt. (DTN) -- Oklahoma Group 3 and Chicago spot market gasoline and diesel fuel prices are up sharply at midday provided by a multi-cent boost in benchmark New York Mercantile Exchange oil futures on news the deadlock had been broken in Vienna and a 1.2 million bpd production cut had been given a stamp of approval by global oil producers. Spot market trading has been active this morning in both the Group and Windy City. Across-the-board surges in NYMEX crude oil, RBOB and ULSD futures were the byproduct of the decision by members of the Organization of the Petroleum Exporting Countries and a group of cartel supporters that include production powerhouse Russia. It was reported a waiver was granted to Iran that has its hands full with sanctions deployed by the United States encouraging global oil buyers to steer clear of Iranian crude oil or face U.S. financial consequences. The $2.21 recovery to $53.70 bbl in January WTI futures was welcome news to paper market bulls, who have taken a similar financial nightmare of margin calls in the current selloff as market bears endured on the upside rally in paper prices. January NYMEX RBOB has posted a 6.74cts futures advance to $1.5008 gallon, and frontline ULSD futures were 6.67cts higher printing $1.9249 gallon at midday. Chicago 15.0-lb. suboctane regular has rebounded 6.74cts to $1.4108 gallon, trading last at a 9.0cts futures discount for second cycle December West Shore Pipeline delivery. A second cycle batch was reported sold at a 3.5cts MERC discount for prompt Wolverine Pipeline offtake, and was offered at MERC level for second cycle delivery into the Buckeye Complex. V-grade 15.0-lb. regular CBOB in the Group sold for prompt offline Magellan Pipeline delivery 6.5cts below the January RBOB futures print that powered spot price up 6.74cts to $1.4358 gallon. X-grade ULSD in the Group changed hands for Magellan Pipeline delivery at a 9.5cts MERC discount that vaulted spot price 7.93cts above its day prior DTN closing market index to $1.8299 gallon. Chicago diesel fuel has backtracked 275pts in basis trading for prompt West Shore Pipeline specific delivery at an 18.5cts MERC discount that limits flat price to a 3.92cts advance at $1.7399 gallon. G.Bud deGorgue, 1.802.524.1784, www.dtn.com. (c) 2018 DTN. All rights reserved.