Crude oil and refined product futures were higher at midday Tuesday, while cash gasoline prices were failing to keep pace.

As a result, refiners in two of the country's largest bulk fuel markets--the Gulf Coast and Chicago--are likely losing money on gasoline. And unremarkable returns on middle distillates are not easing the pain.

The NYMEX November West Texas Intermediate crude contract was up by $1.84 to $72.40/bbl at midday, while the more heavily traded December WTI was $1.77 higher at $71.81/bbl.

The lack of progress on peace initiatives in the Mideast appeared to be keeping oil sellers at bay, despite data that continues to point to a slowdown in oil demand.

The December Brent contract was $1.69 higher at $75.98/bbl, with some of the strength tied to reports the U.S. is poised to announce new sanctions against Russian oil exports.

The NYMEX November RBOB contract was up by 4.91cts to $2.0638/gal. Despite the gains, cash market traders were unwilling to follow the paper market's gains. Spot Gulf Coast CBOB was struggling to trade at prices above $1.94/gal and Chicago gasoline was equally stubborn with outright numbers below $1.92/gal.

OPIS data points to modestly higher U.S. gasoline demand in the week ended Friday, but the gains weren't enough to push consumption to the 9 million b/d level.

Distillate futures' gains were modestly higher than those for gasoline. Prices in futures and most cash markets were up by 5cts/gal or more with the notable exception of the Midcontinent, where prices were 3.8cts to 4.25cts/gal higher. The NYMEX November ULSD contract was up by 4.9cts/gal to $2.2323/gal and some in the market believe stocks may rise over the next several weeks as more refineries return from fall maintenance.


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 Jeff Barber, jbarber@opisnet.com


(END) Dow Jones Newswires

10-22-24 1250ET