Midwest Spot Market Gasoline Prices Up sharply at Midday

    

   BURLINGTON, Vt. (DTN) -- Spot market gasoline prices are posting hefty gains 
in Oklahoma Group 3 and Chicago Tuesday as concerns over the health of the 
Chinese economy turn to the latest figures on crude oil imports generated in 
December.

   Spot market trading activity has been centered in Group 3 this morning. 

   The two-day futures selloff has run out of steam on a strong response by oil 
futures speculators to a Reuters wire service report indicating China has 
purchased three cargoes of crude oil out of the U.S. Gulf Coast that raised 
hope that China and the United States would reach an agreement on their trade 
impasse. Accommodative monetary policy by China rallied oil futures and 
equities in early trading.

   February WTI futures were posting a $1.31 advance at press time printing 
$51.82 bbl. Front month RBOB futures were 4.09cts in the plus column trading 
$1.4047 gallon at midday, and February ULSD futures were 0.94cts higher at 
$1.8619 gallon.

   V-grade 13.5-lb. CBOB in the Group has rallied 4.34cts to $1.3072 gallon, 
trading at a 9.75cts February futures discount for prompt cycle Magellan 
Pipeline delivery. 

   Suboctane 15.0psi RVP regular in Chicago is rated 14.0cts below the February 
RBOB futures print for delivery into the Buckeye Complex that boosts implied 
spot price by 3.59cts to $1.2647 gallon. Wolverine Pipeline offline delivery is 
assessed at a 19.0cts MERC discount.

   X-grade ultra-low sulfur diesel fuel in Group 3 has edged 0.94cts higher to 
$1.3072 gallon on a prompt cycle Magellan Pipeline deal closed at a 10.0cts 
futures discount.

   Chicago ULSD is priced at a 26.0cts February MERC discount for delivery into 
the BCX that bumps spot price up 0.94cts to a notional $1.6019 gallon.

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