Gulf Coast,NYH Spot Product Prices Lower on Futures Plunge
10/17 11:21 AM
Gulf Coast,NYH Spot Product Prices Lower on Futures Plunge BURLINGTON, Vt. (DTN) -- Spot market gasoline and diesel fuel prices at the Texas Gulf Coast and in New York Harbor are taking a beating Wednesday after the Energy Information Administration produced bearish weekly oil data that sent benchmark oil futures prices plummeting on the New York Mercantile Exchange. Physical trading has been a nonstarter in both east of the Rockies markets this morning. U.S. domestic crude oil supply increased 6.5 million bbl during the week of Oct. 12, and inventory levels climbed 1.8 million bbl in the Cushing, Oklahoma supply depot. Stateside crude oil production fell 300,000 bpd to 10,900 million bpd, according to EIA statistics, while imports improved by 218,000 bpd and domestic crude oil exports were reported down 794,000 bpd to 1.782 million bpd. Commercial gasoline stocks fell 2.0 million bbl versus a 400,000 bbl anticipated drawdown. Production was reported up 719,000 bpd, with demand, imports and exports accounting for a 538,000 bpd week-over-week decline. Middle distillate stocks levels fell by a less than projected 827,000 bbl despite an 836,000 bpd retreat in implied demand. Distillate output was cut 213,000 bpd, imports moved 22,000 bpd lower and exports ramped up by 338,000 bpd. U.S. oil refiners maintained an 88.8% utilization rate last week. November WTI futures at press time were down $1.96 bbl printing $69.96 bbl. November RBOB futures were posting a 5.23cts loss at $1.9250 gallon, and spot month ULSD futures at last check were 3.62cts in the loss column at $2.3040 gallon. Gulf Coast 13.5-lb. RBOB is talked either side of a 4.5cts MERC discount in front of afternoon tender deadlines for Colonial Pipeline's 59th cycle that pares implied spot price by 5.68cts to $1.8800 gallon. Conventional 13.5psi RVP regular no lead sold at a penny futures premium for 59th cycle transport, and ahead of the transition to 13.5-lb. gasoline quality maintained by the CPL shipping calendar beginning with the 60th cycle. New York Harbor 11.5psi RVP regular no lead remains rated 8.25cts over the MERC for offline Colonial Pipeline delivery that moves implied spot price 5.23cts below its Tuesday DTN closing market assessment to $2.0075 gallon. Gulf Coast 62-grade diesel fuel traded last at a 5.4cts November futures discount for 59th cycle Colonial Pipeline transport that pares spot price by 3.52cts to $2.2500 gallon. New York Harbor ultra-low sulfur diesel fuel has backpedaled 3.62cts to a notional $2.3015 gallon, offered at MERC level for prompt barge or Buckeye Pipeline transit. G.Bud deGorgue, 1.802.524.1784, (c) 2018 DTN. All rights reserved.