Chicago, Group 3 Oil Products Post Futures-related Losses
10/12 4:28 PM
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.