N.Y.H., Gulf Coast Spot Products Range Lower on EIA Data
BURLINGTON, Vt. (DTN) -- Spot market oil product prices in New York Harbor
and at the Texas Gulf Coast are ranging lower Wednesday morning, tracking a
moderate retreat in New York Mercantile Exchange oil futures after the Energy
Information Administration reported unexpected across-the-board builds in
commercial crude oil and finished product inventories in its weekly statistical
survey released this morning.
Cash market trading has been light in both the Harbor and at the Gulf Coast
in response to choppy price action on the MERC.
The EIA trumped market pundits who had projected a decline in crude oil
inventories by detailing a massive 7.3 million bbl increase in domestic
reserves as imports soared by 1.176 million bpd during the week-ended July 23.
Gasoline storage levels continued to build during a period of normal declines,
easing 91,000 bbl as a 333,000 bpd production increase more than countered a
reported 197,000 bpd surge in implied demand. Distillate fuel inventories edged
up 938,000 bbl despite a reported 241,000 bpd increase in implied demand and a
162,000 bpd output cut. Refinery utilization eased 0.9 percent to 90.6 percent
of capacity during the week profiled.
NYMEX crude oil and finished product futures were moving lower late morning,
but trading well above session lows as the disconnect between futures pricing
and physical market fundamentals remains a glaring dichotomy.
August RBOB futures were trading down 1.74cts at $2.0488 gal late morning,
with the September contract 1.26cts lower at $2.0515 gal. Frontline heating oil
futures were 0.79cts in the loss column, trading $1.9915 gal at press time,
with September futures posting a 0.73cts session loss at $2.0221 gal. September
crude oil futures were down $0.69, trading $76.81 bbl at last check.
Gulf Coast M2 9.0psi regular no lead has moved 1.56cts below its Tuesday
closing range to $1.9515 gal, trading at discounts to September RBOB futures of
9.75cts, 9.85cts and 10.0cts gal for 43rd cycle Colonial Pipeline transport. M1
southern summer grade regular is assessed at a 3.25cts premium versus M2
regular no lead.
Conventional M2 regular in the Harbor has changed hands for early August
barge lifting at a 6.0cts discount versus September NYMEX RBOB futures that
trims flat price by 0.17cts to $1.9915 gal. F2 RBOB has eased 0.67cts to a
notional $2.0465 gal, talked either side of a 0.5cts discount to September
futures for Aug. 1-10 barge trade.
Ultra-low sulfur 61-grade diesel fuel at the Gulf Coast has eased 0.48cts to
$2.0471 gal, trading on the rollover to Colonial Pipeline's 43rd cycle at
premiums over September heating oil futures of 1.75cts, 2.0cts 2.25cts, 2.35cts
and 2.5cts gal this morning.
Ultra-low sulfur diesel fuel in the Harbor is talked 5.0cts over August No.2
oil futures that trims implied spot price by 0.79cts to $2.0415 gal for prompt
Buckeye Pipeline shipment. No.2 heating oil has followed ULSD lower to an
implied $1.9590 gal, assessed on a prompt fob basis at a 3.25cts MERC discount.
G.Bud deGorgue, 1.802.524.1784, bud.degorgue@telventdtn.com,
www.telventdtn.com. (c) 2010 Telvent DTN. All rights reserved.
