N.Y.H.,Gulf Spot Products Up as EIA Data Fuels NYMEX Rally

    

   BURLINGTON, Vt. (DTN) -- Spot market oil product prices in New York Harbor 
and at the Texas Gulf Coast are moving higher Thursday morning, tracking a 
fresh advance in New York Mercantile Exchange oil product futures.

   Open market trading has been light in the Harbor and at the Gulf in response 
to the latest rally in benchmark futures prices, with total U.S. petroleum 
stockpiles at a 27-year high according to the most recent data supplied by the 
Energy Information Administration.

   The EIA detailed an unexpected 1.9 million bbl drawdown in commercial crude 
oil inventories during the week-ended Sept. 3, with total distillate storage 
levels easing by 388,000 bbl and gasoline stockpiles dropping by a 
less-than-anticipated 243,000 bbl to an 18-million bbl year over year surplus. 
Refineries ramped up utilization by 1.2 percent to 88.2 percent of capacity 
during the week profiled. 

   NYMEX crude oil and product futures opened higher and have maintained an 
upward market bias late morning, as paper traders respond to the moderately 
bullish EIA statistics and an improvement in equities with investors encouraged 
by a drop in initial weekly claims for unemployment benefits. 

   October RBOB futures were well below session highs trading up 1.76cts at 
$1.9570 gal late morning, with October heating oil futures 1.6cts in positive 
territory printing $2.0977 gal. October crude oil futures were posting a $0.88 
gain, trading $75.55 bbl at press time, this despite U.S. crude oil inventories 
at a 22.4 million bbl surplus versus comparable period last year. 

   Gulf Coast conventional M3 regular no lead has improved 90pts in cash 
differential and 2.66cts in spot price to $1.9845 gal, as traders bid prices 
higher following yesterday's sell-off ahead gasoline scheduling for Colonial 
Pipeline's 51st cycle. M3 has changed hands at a 2.75cts futures premium this 
morning for 52nd cycle CPL transport. 

   Conventional M2 regular in the Harbor has traded and is rebid at a 2.5cts 
MERC premium for prompt barge loading that boosts spot price by 2.04cts to 
$1.9820, and winter grade M4 regular is assessed at parity with its summer 
quality M2 counterpart for prompt trade. Harbor gasoline moves to 13.5psi RVP 
quality on September 13. F2 RBOB remains indexed for prompt trade at a 2.0cts 
futures premium that moves implied flat price up 1.76cts to $1.9770 gal.

   Ultra-low sulfur 61-grade diesel fuel at the Gulf Coast is also being bid 
higher by trade house players following Wednesday's pre-scheduling basis plunge 
to a 1.75cts futures premium, with deals struck for 52nd cycle CPL transit 
struck this morning at futures premiums of 2.75cts and 3.0cts gal vaulting spot 
price up 2.85cts to $2.1277 gal. ULSD for ratable October CPL transport has 
been reported sold at premiums over November NYMEX No.2 oil futures of 2.6cts, 
2.4cts and 2.25cts gal this morning. 

   Ultra-low sulfur diesel fuel in New York Harbor is indicated for prompt 
barge/Buckeye Pipeline transit at a 6.25cts futures premium that gives spot 
price a 1.35cts futures-related lift to a notional $2.1602 gal. No.2 home 
heating oil remained indexed at a 2.25cts futures discount for prompt trade at 
an implied $2.0752 gal. 

   G.Bud deGorgue, 1.802.524.1784, bud.degorgue@telventdtn.com, 
www.telventdtn.com. (c) 2010 Telvent DTN. All rights reserved.