Midwest Oil Products Rally on Follow through Futures Gains
6/14 12:43 PM
Midwest Oil Products Rally on Follow through Futures Gains BURLINGTON, Vt. (DTN) -- Spot market diesel fuel and gasoline prices in Midwest markets are higher at midday, riding the wake of a fresh wave of buying on the New York Mercantile Exchange. Futures prices moved higher overnight after the United States laid blame on Iran for recent attacks on oil vessels outside the Strait of Hormuz that analysts believe heightens the risk of a military confrontation by the two adversaries in the oil rich region. Spot month NYMEX crude oil futures were trading $0.49 higher at midday printing $52.77 bbl, and a whisker shy of a $52.90 bbl intraday high. July ULSD futures were 3.03cts on the plus side at $1.8369 gallon, and the frontline RBOB contract was up 1.83cts trading $1.7382 gallon at press time. Chicago ultra-low sulfur diesel fuel has soared 6.53cts to a notional $1.6569 gallon, tagged at an 18cts July futures discount for second cycle June generic pipeline delivery. Third cycle diesel begins deliveries over the weekend rated 14cts over the MERC for offline Badger Pipeline delivery. X-grade ULSD in Group 3 has moved 3.28cts above its Thursday closing range to an implied $1.7994 gallon on a 25pts basis improvement to a 3.75cts MERC discount for prompt Magellan Pipeline offtake. Chicago 9.0-lb. suboctane regular is priced at a 6.5cts July futures discount for third cycle Badger Pipeline delivery, with the 150pts basis retreat limiting spot price to a 0.33cts advance at $1.6732 gallon. V-grade 9.0-lb. Group 3 suboctane regular has ramped up 2.08cts to $1.6357 gallon, priced for prompt delivered Magellan Pipeline supply 10.25cts below the July RBOB futures print. G. Bud deGorgue, 1.802.524.1784, bud.degorgue@dtn.com, www.dtn.com. (c) 2019 DTN. All rights reserved.
Copyright DTN. All rights reserved. Disclaimer.
Powered By DTN