West Coast Spot Oil Products Jump on MERC in Subdued Trade
12/07 12:34 PM
West Coast Spot Oil Products Jump on MERC in Subdued Trade CRANBURY, N.J. (DTN) -- Oil products prices in West Coast spot markets were up sharply on a rally by benchmark oil futures traded on the New York Mercantile Exchange, with the futures advance spurred by agreed to production cuts by the Organization of the Petroleum Exporting Countries and a non-OPEC contingent led by Russia. OPEC and non-OPEC agreed to a combined 1.2 million bpd six-month production from October output rates set to begin Jan. 1, 2019. OPEC will cut 800,000 bpd and non-OPEC producers will reduce their output by 400,000 bpd. Brent futures with February delivery rallied to a two-week spot high of $63.73 bbl in trading on the Intercontinental Exchange on news of the agreement, up $2.85 near $62.90 bbl early afternoon. NYMEX January West Texas Intermediate futures were up $2.25 near $53.75 bbl. NYMEX January RBOB futures were up nearly 6.5cts at $1.4975 gallon early afternoon, having traded at a $1.5177 gallon better-than two-week high on the spot continuous chart. NYMEX January ULSD futures also surged to a two-week spot high, reaching $1.9534 gallon, while up 6.7cts near $1.9250 gallon early afternoon. Los Angeles CARBOB regular eased 50 points in basis to a 4.0cts by 9.0cts premium to January futures for December delivery, with spot price up 5.95cts to about $1.5625 gallon. January CARBOB was talked in a 4.0cts by 6.5cts premium to futures. Brian L. Milne, 1.609.371.3328, brian.milne@dtn.com, www.dtn.com. (c) 2018 DTN. All rights reserved.