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.