Midwest Gasoline Rally Stalls after Hectic Trading Week

    

   BURLINGTON, Vt. (DTN) -- Chicago spot gasoline prices soared 16.32cts gallon 
this week and in excess of 8.0cts in Oklahoma Group 3 in rallies that ran out 
of steam in front of the weekend trading hiatus on a moderate breakdown in cash 
differentials Friday afternoon. Heartland diesel fuel prices tumbled on a 
better than 2.0cts downturn in benchmark April ULSD oil futures on the New York 
Mercantile Exchange.

   Physical trading was on the light side to close the week in both Midwest 
markets. 

   Crude futures took a nearly dollar dive on disappointing economic news that 
also sent U.S. equity markets plummeting over 1.75% at the close of trading 
this afternoon. Fears of an economic slowdown and diminishing demand for crude 
and oil products generated profit taking in all but the April RBOB futures 
contract at settlement.

   April RBOB futures edged 0.56cts into positive territory to $1.9259 gallon 
at settlement, and posted a 6.82cts gain on the week. Front month ULSD futures 
backpedaled 2.12cts to $1.9659 gallon at the regular session close, and ended 
the week marginally lower. 

   May crude oil futures closed a volatile week of paper trading down $0.94 at 
$59.04 bbl, and climbed $0.72 bbl during the week. The number of rigs drilling 
for oil in the United States declined for the fifth consecutive week, down nine 
to an 824 11-month low, oil futures provider Baker Hughes reported this 
afternoon.

   Chicago 9.0-lb. suboctane regular was reported sold for third cycle March 
Wolverine Pipeline delivery at a 3.5cts April futures premium that trimmed spot 
price 0.94cts to $1.9609 gallon. RBOB remained 6.0cts over CBOB and PBOB at a 
28.0cts CBOB premium.

   Group V-grade 8.5-lb. CBOB dropped 175pts in basis trading at a 5.25cts MERC 
discount for offline Magellan Pipeline delivery that pared spot price by 
1.19cts to $1.8734 gallon, and 13.5-lb. was heard sold 6.5cts below the April 
RBOB futures print.

   Premium A-grade unleaded eased a penny to a 24.0cts regrade backing spot 
price down 2.19cts to $2.1134 gallon. 

   X-grade ultra-low sulfur diesel fuel in Group 3 posted a 1.97cts loss at 
$1.9834 gallon, trading 1.75cts over the frontline futures print for prompt 
Magellan Pipeline supply. 

   Chicago ULSD dropped to a 0.5cts MERC premium for Wolverine Pipeline offtake 
backing flat price down 3.12cts to a notional $1.9709 gallon. 

   G. Bud deGorgue, 1.802.524.1784, bud.degorgue@dtn.com, www.dtn.com. (c) 2019 
DTN. All rights reserved.