Chicago, Group 3 Oil Products Climb Riding Futures Rally
2/23 4:34 PM
Chicago, Group 3 Oil Products Climb Riding Futures Rally BURLINGTON, Vt. (DTN) -- Spot market gasoline and diesel fuel prices in heartland markets posted gains Friday fueled for the most part by a positive oil futures trading session on the New York Mercantile Exchange. Cash trading was flat in Group 3 and Chicago with marketers sidelined by the futures surge except for pressing prompt supply requirements. Futures traders maintained relentless buying across the NYMEX complex encountering few market bears willing to jump in front of a runaway train ahead of the two day weekend trading break. The number of active rigs drilling for oil in the United States gained one this week to 799, marking the fifth consecutive weekly increase and the highest count since the first week of April 2015, according to oil services firm, Baker Hughes. So far this year, a total of 52 oil rigs have been deployed in the U.S. At the current level, rigs are up 197 versus comparable week last year. March NYMEX RBOB futures soared 4.28cts to $1.8085 gallon at settlement this afternoon and rallied 5.76cts this week. March ULSD futures closed the book on today's formal trading session up 1.67cts at $1.9694 gallon, and for the week climbed 5.9cts. April crude oil futures ramped up $0.78 to $63.55 bbl at settlement, and ended a volatile week of paper trading up $1.87. Group 3 X-grade ultra low sulfur diesel fuel sold at MERC level for prompt Magellan Pipeline offtake that boosted spot price by 1.67cts to $1.9694 gallon. Chicago ULSD gained 25pts in basis rated at a 6cts March futures discount for generic third cycle February pipeline delivery that moved spot price 1.92cts above its Thursday DTN closing market rating to a notional $1.9094 gallon. V-grade 13.5-lb. regular CBOB in Group 3 fell 225pts in cash differential indexed at a 0.25cts MERC discount for MPL delivered supply that limited spot price to a 2.03cts advance to an implied $1.8060 gallon. A-grade unleaded premium crumbled 600pts to a 14cts regrade that sent spot price spiraling down 3.97cts to $1.9460 gallon. Chicago 13.5-lb. CBOB rallied 3.28cts to a notional $1.6435 gallon well offered for prompt generic pipeline delivery 16cts below the March RBOB futures print, and a CBOB parcel for Wolverine Pipeline specific delivery was reported sold at an 11cts March futures discount. RBOB remained indexed at a 3cts CBOB premium and PBOB 27.5cts over suboctane CBOB. G.Bud deGorgue, 1.802.524.1784, bud.degorgue@dtn.com, www.dtn.com. (c) 2018 DTN. All rights reserved.