Futures markets began trading Monday with little headwind and choppy price action, but the U.S. Gulf Coast completed its annual switch to 9lb RVP specifications and prices rose more than 10 cts/gal.
The gains are expected to push U.S. retail prices past $3.40 a gallon in the next few days.
However, RBOB is not particularly active in CME trading. April futures rose 3.95 cents to $2.5667/gallon, while May futures rose 3.71 cents to $2.5585/gallon.
Outside the Gulf Coast, cash gasoline prices rose 3.5-5.3 cents/gallon in markets east of the Rocky Mountains, while western states rose 2.25-3.5 cents/gallon. There is a strong historical tradition of gasoline rising sharply from mid-March to mid-May.
Crude oil prices were in the doldrums on Monday morning, but early losses of $1 a barrel for Brent and West Texas Intermediate were reversed later in the day. The April WTI contract managed to gain 11 cents to $78.12 a barrel, while the May Brent contract gained 28 cents to $82.36 a barrel. There was little news underlying the moves, although Iran's news agency issued a press release suggesting the country would continue to increase production and export plenty of crude oil even if former President Trump was re-elected in November.
On the diesel side, there is discussion about a large cargo of gasoil that the new Dangote refinery is offering from its Nigerian site. The cargo's sulfur content is approximately 46 times the U.S. allowable level. Therefore, it would be premature to assume that the plant will soon have an impact on the diesel and gasoline markets in the North Atlantic.
ULSD futures struggled midday, with April contracts down 0.12ct at $2.6397/gallon. In most cases, cash prices were mixed with partial moves, with the exception of a 5c/gal increase in Chicago bulk.
This content was created by the Oil Price Information Service operated by Dow Jones & Co. OPIS is operated independently from Dow Jones Newswires and The Wall Street Journal.
–Reporting by Tom Kloza, [email protected]; Editing by Michael Kelly, [email protected]
(END) Dow Jones Newswires
March 11, 2024 12:55 ET (16:55 GMT)
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