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
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
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, email@example.com, www.dtn.com. (c) 2019
DTN. All rights reserved.