Chicago, Group 3 Oil Products Post Futures-related Losses

    

   BURLINGTON, Vt. (DTN) -- Cash oil product prices in Chicago and Oklahoma 
Group 3 headed lower Thursday as New York Mercantile Exchange oil futures broke 
a two session winning streak and closed lower after the U.S. Energy Information 
Administration delivered a relatively neutral slate of weekly petroleum data 
late morning. 

   Open market trading remained brisk in both Chicago and the Group.

   The EIA data for the week-ended Oct. 6 were mostly in line with market 
expectations.  

   Distillate stocks recorded a 1.5 million bbl decline despite a 359,000 bpd 
plunge in implied demand. A 246,000 bpd increase in distillate exports, a 
35,000 bpd boost in production and 13,000 bpd in additional imports provided 
the mix in total distillate supply. PADD 2 distillate storage levels fell 
300,000 bbl.

   Commercial gasoline stocks climbed by 2.5 million bbl, according to EIA 
statistics, although a 239,000 bpd demand increase, 112,000 bpd production cut 
and 2,000 bpd fewer imports did not balance well with the stock build. Gasoline 
supply in PADD 2 fell 600,000 bbl week-on-week.

   Domestic crude oil stocks were drawn down by 2.7 million bbl, while Cushing, 
Oklahoma, crude oil stockpiles increased by 1.3 million bbl. 

   U.S. refiners increased utilization by 1.1%, running at 89.2% of capacity 
last week. 

   NYMEX November RBOB futures settled down 2.6cts at $1.5843 gallon, and the 
November ULSD contract finished formal session trading 2.06cts lower at $1.7655 
gallon. November WTI crude oil posted a $0.70 loss settling at $50.60 bbl.

   Suboctane 13.5-lb. regular in Group 3 climbed 225pts in basis trading for 
prompt cycle Magellan Pipeline offtake at a 10.25cts November futures premium 
that limited spot price to a 0.35cts loss at $1.6857 gallon. A-grade premium 
unleaded tumbled 2.35cts to $1.9737 gallon rated at a 28cts regrade. 

   Chicago CBOB moved 2.1cts below its Wednesday DTN closing market range to 
$1.6982 gallon, changing hands at an 11.5cts MERC premium for second cycle 
October Wolverine Pipeline specific delivery. RBOB remained assessed at a 
3.0cts CBOB premium and PBOB 26.5cts over CBOB. 

   X-grade Group 3 ultra-low sulfur diesel fuel plunged 2.56cts to $1.8255 
gallon, backing down 50pts in basis trading at a 6.0cts MERC premium for prompt 
cycle Magellan Pipeline offtake. 

   Chicago ULSD was reported sold for prompt Badger Pipeline delivery at a 
9.0cts November futures premium that trimmed spot price by 2.06cts to $1.8555 
gallon. 

   G.Bud deGorgue, 1.802.524.1784, bud.degorgue@dtn.com, www.dtn.com. (c) 2017 
DTN. All rights reserved.