NYMEX OVERVIEW: ULTRA-LOW-SULFUR DIESEL LEADS REVERSAL -- OPIS
7 March 2024, 19:38
After a slow start in petroleum futures a turnaround in
ULSD futures prices has lifted the entire complex and turned losses into gains shortly after midday.
The move in diesel has been enough to reverse the rest of the market at a time of year when ULSD is typically the laggard. Not only has diesel reversed, but the strong move higher is now getting to the point where back to back days of increases are largely offsetting the losses at the beginning of the week.
Not only is the front month
diesel contract moving higher, it is doing so at a pace that is not being met by outer contracts and, as a result, the April contract holds nearly 6cts above the May contract. After being down some 2cts earlier, April ULSD futures are now up 3.19cts at $2.6941/gal. Trade sources note that some buying was triggered after the contract got back above $2.66/gal and that brought ULSD briefly above the $2.70/gal level.
Losses in
RBOB are now gains in the 1.25-1.5cts range for second-quarter contracts, led by May which was last printing at $2.5674/gal and just fractions of a cent off the earlier highs.
While futures have moved higher, physical markets are a bit more mixed with the Chicago and New York markets seeing increases in the 1.5-2.5cts range at midday.
April
WTI has not jumped back across the $79/bbl level, trading at $79.28/bbl and topping out at $79.36/bbl recently. While the contract has spent some time above $80/bbl, a settlement above that level has continued to be elusive. The
Brent contract is also moving higher and increases there are a bit more than
WTI with May
Brent last trading up 29cts at $83.25/bbl.
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 Denton Cinquegrana,
dcinquegrana@opisnet.com; Editing by Andrew Atwal,
aatwal@opisnet.com
(END) Dow Jones Newswires March 07, 2024 12:38 ET (17:38 GMT) Copyright (c) 2024 Dow Jones & Company, Inc.