Midwest Spot Product Prices Mixed ahead of Weekend Break
BURLINGTON, Vt. (DTN) -- Spot market product prices in Chicago and Oklahoma
Group 3 posted mixed results Friday afternoon, tracking a choppy paper trading
session on the New York Mercantile Exchange. Regional spot diesel fuel prices
moved lower in line with a pullback in NYMEX December No.2 oil futures, while
spot gasoline prices surged on an improvement in basis and a moderate advance
in benchmark December NYMEX RBOB gasoline blendstock futures.
NYMEX crude oil and product futures moved lower at the market open and
gradually worked above those session lows throughout the day on book-squaring
ahead of the weekend break. A fractional downturn in the stock market and
rebound in the U.S. dollar had little apparent impact on the markets today.
December RBOB futures pushed into positive territory in the final minutes to
trading to finish the day up 1.11cts at $1.9805 gal, and closed the week with a
6.44cts gal gain. December No.2 oil futures failed to post a positive close,
settling down 2.08cts at $1.9756 gal, and for the week edged up 0.95cts gal.
The December crude oil futures contract expired at the market close down $0.74
at $76.72 bbl, with the January contract settling down $0.58 at $77.47 bbl.
Conventional regular no lead in Chicago surged this afternoon on aggressive
buying by a regional refiner for prompt pipeline specific delivered barrels.
Refiner reportedly paid a 4.75cts futures discount for prompt offline Wolverine
Pipeline delivery that market sources say equated to a 6.75cts MERC discount
for generic third cycle November pipeline product. Spot price ramped up 2.61cts
to a notional $1.9131 gal, based on the generic market assessment. Conventional
premium no lead moved higher in tandem to an implied $2.0221 gal, priced for
prompt generic offtake at a 12cts regrade. Conventional gasoline prices rallied
7.19cts in the Windy City this week. RBOB remained indexed at a 2cts premium
versus conventional regular that boosted implied flat price by 2.61cts to
$1.9331 gal, and PBOB followed its RBOB counterpart higher to $2.0631 gal,
holding steady at a 13cts regrade for third cycle generic trade. Spot market
gasoline blendstock prices closed the week up 7.19cts gal in Chicago.
N-grade conventional regular in the Group improved a penny in cash
differential and 2.11cts in flat price to $1.9656 gal, reportedly trading for
prompt Magellan Pipeline delivery at a 1.5cts futures discount. A-grade
conventional premium remained indexed at a 5.5cts regrade at an implied $2.0206
gal. For the week, N-grade climbed 6.69cts, and A-grade premium advanced
6.19cts gal.
Group 3 X-grade ultra-low sulfur diesel fuel eased 1.83cts to $1.9731 gal,
talked either side of a 0.25cts futures discount for prompt Magellan Pipeline
delivery. XH low sulfur diesel fuel maintained price parity with X-grade for
prompt MPL delivered barrels. Spot market diesel fuel prices edged up 1.45cts
in the Group this week.
Chicago ultra-low sulfur diesel fuel was talked at a 1.75cts futures
discount for generic third cycle pipeline delivery that pared implied flat
price by 1.83cts to $1.9581 gal. Low sulfur on-road diesel fuel remained
indexed at a 5cts quality discount versus ULSD, with off-road priced 0.5cts
below its on-road counterpart for prompt trade. Spot market diesel fuel prices
closed the week up 0.7cts gal.
Bud deGorgue, 1.802.524.1784, bud.degorgue@dtn.com, www.telventdtn.com.
(c) 2009 Telvent DTN. All rights reserved.
