Futures Plunge sends Midwest Spot Oil Products Plummeting
BURLINGTON, Vt. (DTN) -- Spot market gasoline and diesel fuel prices in
Oklahoma Group 3 and Chicago posted steep losses Wednesday pressured by a
broad-based selloff and price plunge in September RBOB and ULSD oil futures on
the New York Mercantile Exchange.
Cash trading was active early, but tapered off this afternoon in both
The Energy Information Administration published its Aug. 10 petroleum supply
statistics this morning and the outcome triggered a steady exodus out of crude
oil and oil product positions.
A red flag was raised when the EIA showed a 1.64 million bbl build in crude
oil supply at Cushing, Oklahoma that snapped 12 consecutive weekly declines in
stocks at the NYMEX crude oil delivery hub. Total domestic crude oil supply
posted a 6.81 million bbl week-over-week increase that added to the bearish
tint of the EIA numbers.
Commercial gasoline grades held in storage fell 740,000 bbl on a 166,000 bpd
improvement in implied demand and a drop of 272,000 bpd in gasoline imports.
Total distillate storage levels increased 3.6 million bbl on demand weakness
and increases in imports and production.
U.S. refiners ramped up utilization by 1.5% running at 98.1% of capacity.
Regionally, stocks of gasoline in PADD 2 fell 200,000 bbl last week, and
Midwest distillate stocks posted a 300,000 bbl increase.
NYMEX September WTI futures closed another volatile trading session down
$2.03 at $65.01 bbl. September RBOB futures settled 3.67cts lower at $1.9974
gallon, and frontline ULSD futures ended formal session trading 3.83cts in red
figures at $2.0904 gallon.
Crude oil and oil products were building on losses in aftermarket trading at
Chicago 9.0-lb. CBOB has tumbled 3.67cts below its Tuesday DTN closing
market posting to $1.9924 gallon, trading at a 0.5cts September futures
discount for second cycle August delivery into the Buckeye Complex. RBOB
remained indexed at a 9.0cts CBOB premium and PBOB 34.0cts over CBOB.
Group 3 V-grade 9.0-lb. suboctane regular posted a 3.67cts loss at $1.9599
gallon, trading at a 3.75cts September futures discount for prompt Magellan
Pipeline delivery, and A2 premium no lead remained rated at a 25.0cts regrade.
Chicago ultra-low sulfur diesel fuel sold at a 2.5cts MERC premium for third
cycle West Shore Pipeline delivery that backed spot price down 3.83cts to
ULSD X-grade in Group 3 tumbled 3.68cts to $2.1179 gallon on a deal closed
for prompt Magellan Pipeline offtake at a 2.75cts September futures premium.
G.Bud deGorgue, 1.802.524.1784, www.dtn.com. (c) 2018 DTN. All rights