N.Y.H, Gulf Spot Product Prices Range Higher with Futures
BURLINGTON, Vt. (DTN) -- Spot market oil product prices at the Texas Gulf
Coast and in the New York Harbor headed higher Tuesday afternoon, as benchmark
oil product futures traded on the New York Mercantile Exchange shook off a
midmorning sell-off to finish comfortably in the plus column at the market
close.
Open market trading was moderate in the Harbor and active at the Gulf Coast
for prompt pipeline cover.
NYMEX crude oil and oil product futures returned to an upside trek on active
crack spread trading that boosted the October heating oil/crude oil spread
$1.22 bbl on the day and the front month RBOB crack up $1.07 bbl.
Paper traders shrugged off a plunge in equities and rally in the U.S.
dollar, turning back to market fundamentals for trading inspiration and bidding
products higher on news of a compressor explosion at a desulfurization unit at
Petroleos Mexicanos' 235,000 bpd Cadereyta refinery. The blast reportedly
killed one worker and injured ten others, according to a PEMEX spokesman. It is
unclear what impact, if any, the incident will have on gasoline imports into
the U.S. Gulf Coast.
October No.2 heating oil futures ricocheted off a $2.0265 session low to
finish the whipsaw trading session up 1.70cts at $2.0743 gal. October RBOB
futures settled up 1.34cts at $1.9329 gal, having tumbled earlier to a $1.8816
gal intraday low. October crude oil futures closed the day down $0.51 at $74.09
bbl.
Conventional M3 11.5psi regular no lead at the Gulf Coast advanced 1.90cts
to $1.9554 gal, trading at a 2.25cts futures premium for 51st cycle Colonial
Pipeline shipment, and at a 1.00cts premium over November NYMEX RBOB futures
for ratable October CPL transport at an implied $1.9429 gal. V3 premium no lead
was assessed at a 6.5cts regrade at $2.0204 gal. F3 11.5psi RBOB moved 2.09cts
above its Friday closing range to a notional $1.9729 gal, talked either side of
a 4.0cts MERC premium for prompt cycle CPL transit. H3 PBOB gained 1.34cts to
$2.0354 gal on a 51st cycle CPL trade booked at a 10.25cts futures premium. A3
CBOB maintained price parity with M3 regular no lead and D3 premium CBOB at a
5.25cts regrade.
Conventional M2 regular no lead in the Harbor traded for barge loading on
September 10 at a 2.10cts futures premium that bumped spot price up 1.19cts to
$1.9539 gal and at a 1.5cts MERC premium for M4 winter quality regular no lead
for any September barge lifting. F2 summer grade RBOB was heard bid at a
1.75cts futures premium on a prompt fob basis that boosted implied spot price
1.89cts to $1.9529 gal. Conventional V2 premium no lead surged 2.59cts to an
implied $2.0204 gal, offered prompt 9.0cts over the frontline RBOB futures
contract, and H2 PBOB was talked either side of a 10.0cts futures premium for
prompt trade. CBOB was assessed at a 1.5cts MERC premium for prompt timing and
premium CBOB at a 5.0cts futures premium.
Ultra-low sulfur 61-grade diesel fuel at the Gulf Coast edged up 0.90cts to
$2.0923 gal, trading sizeable volume at a 1.8cts futures premium for 51st cycle
Colonial Pipeline shipment. High sulfur 88-grade heating oil moved 0.95cts
above its day prior closing range to $2.0218 gal trading in front of afternoon
scheduling deadlines at a 5.25cts futures discount.
Ultra-low sulfur diesel fuel in New York Harbor sold for offline Colonial
Pipeline 47th cycle Harbor delivery at a 7.0cts MERC premium that moved spot
price 1.95cts above its Friday closing range to $2.1443 gal. No.2 heating oil
moved 1.45cts higher to an implied $2.0518 gal, indicated with options for
prompt barge/Buckeye Pipeline transport at a 2.25cts MERC discount.
G.Bud deGorgue, 1.802.524.1784, bud.degorgue@telventdtn.com,
www.telventdtn.com (c) 2010 Telvent DTN. All rights reserved.
