Futures markets commenced Monday trading with few steering winds and rangebound price action, but the U.S. Gulf Coast has made its annual transition to 9-lb RVP specifications and prices are up by more than 10cts/gal.
The gains are likely to take U.S. retail prices above the $3.40-a-gallon mark in the next few days.
RBOB isn't especially active in CME trading, however. April futures were up 3.95cts at $2.5667/gal with May ahead 3.71cts to $2.5585/gal.
Beyond the Gulf Coast, cash prices for gasoline advanced by 3.5-5.3cts/gal in east of the Rockies markets with Western states up 2.25-3.5cts/gal. There is a strong historical tradition of gasoline rallying considerably from mid-March to mid-May.
Crude was in the doldrums Monday morning, but early losses of $1 a barrel for Brent and West Texas Intermediate turned around as the day progressed. The April WTI contract managed to eke out an 11ct gain to $78.12/bbl, while May Brent moved up 28cts to $82.36/bbl. There was little news driving the moves, although Iran's news agency put out a release suggesting that the country would continue to raise production and export plenty of crude even if former President Trump is re-elected in November.
On the diesel side, there is some discussion of a large cargo of gasoil that the new Dangote refinery is offering out of its Nigerian location. The sulfur standard on the cargo is about 46 times what is allowed in the U.S., so it would be premature to suggest that the plant is about to impact Northern Atlantic diesel and gasoline markets.
ULSD futures struggled at midday with April contracts off 0.12cts at $2.6397/gal. Cash prices were mixed with fractional moves in most cases, except for a 5ct/gal increase in the Chicago bulk arena.
This content was created by Oil Price Information Service, which is operated by Dow Jones & Co. OPIS is run independently from Dow Jones Newswires and The Wall Street Journal.
--Reporting by Tom Kloza, tkloza@opisnet.com; Editing by Michael Kelly, mkelly@opisnet.com
(END) Dow Jones Newswires
03-11-24 1255ET
