Midwest Gasoline Grades Rally on Strong Buying Interest
5/24 4:50 PM
Midwest Gasoline Grades Rally on Strong Buying Interest BURLINGTON, Vt. (DTN) -- Spot market gasoline cash differentials soared in Oklahoma Group 3 and Chicago on aggressive refiner and trade house buying headed into the long Memorial Day holiday weekend. Diesel fuel prices improved in the Group and eased in Chicago on a basis pullback. Sources in the Group saw the gasoline rally developing after HollyFrontier on Thursday shut its 125,000 bpd Tulsa refinery as a precaution when the National Weather service reported moderate flooding on the Arkansas River, not far from the refinery. Buying followed and V-grade CBOB began to advance. V-grade Group 3 suboctane regular put on a spectacular show, trading up 10.0cts in cash differential to an 8.0cts June futures premium that vaulted spot price 12.12cts above its DTN Thursday closing market assessment to $2.0145 gallon for prompt offline Magellan Pipeline supply. Chicago 9.0-lb. CBOB rallied 6.37cts to $1.9445 gallon, gaining 400pts in basis to a penny July futures premium for third cycle May Wolverine Pipeline delivery. Chicago ultra-low sulfur diesel fuel backtracked 125pts to a 1.50cts July futures discount, trimming implied flat price by a moderate 0.36cts to $1.9563 gallon for generic pipeline trade. X-grade ultra-low sulfur diesel in the Group sold at a 3.5cts June MERC discount for prompt MPL offtake, providing spot price an 0.89cts advance to $1.9363 gallon. New York Mercantile Exchange July West Texas Intermediate futures closed $0.72 higher at $58.63 bbl, but for the week plunged $4.13 bbl. June ULSD futures climbed 0.89cts to $1.9713 gallon at settlement, and plummeted 12.42cts in value on the week, while June RBOB futures climbed 2.12cts to $1.9345 gallon and delivered an 11.28cts loss on the week. G.Bud deGorgue, 1.802.524.1784, bud.degorgue@dtn.com, www.dtn.com. (c) 2019 DTN. All rights reserved.
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