Refined product futures bounce back, crude futures see modest gains. Bargain hunting drives petroleum futures. Mixed economic data affects market. Low prices in US spot markets. Categories: Finance, Energy, Economy. Tags: Refined product futures, Cru...
Troy D. Hanson
October 31, 2023
Refined product futures bounced back on Tuesday, recovering some of the sharp declines seen the previous day. Crude futures also saw modest gains.
Refined Product Futures
The NYMEX December ULSD contract, the more active of the two, was up 7 cents at $2.9535/gal as of 11:55 a.m. ET. Meanwhile, the expiring November ULSD contract rose 5.8 cents to $3.0240/gal.
In the RBOB market, the NYMEX December contract gained 2.65 cents to reach $2.2435/gal, while the November contract was up 3.1 cents at $2.251/gal.
Bargain Hunting Drives Petroleum Futures
Despite a stronger dollar, petroleum futures strengthened due to bargain hunting.
The NYMEX December West Texas Intermediate contract climbed 55 cents to $82.85/gal, and the January WTI contract increased by the same amount, reaching $82.25/bbl.
On the other hand, the London-based ICE December Brent contract rose by 45 cents to $87.90/bbl, while the January Brent contract saw a 50 cent increase, reaching $86.85/bbl.
Mixed Economic Data
Economic data presented a mixed picture, with weaker-than-expected manufacturing numbers from China potentially offsetting the EU's two-year low in inflation rates.
Crude Contracts Decline
Crude contracts experienced a decline of over $3/bbl on Monday, reaching their lowest level since Hamas attacked Israel on October 7.
Low Prices in US Spot Markets
In US spot markets, prices for CBOB and RBOB in the Gulf Coast fell to their lowest levels since 2023 on Monday, making them a loss leader for regional refineries.
Additionally, at the wholesale terminal level, prices for gasoline blended with 10% ethanol fell below $2/gal on Tuesday for the first time this year. Most of the lower-priced racks were supplied by Gulf Coast pipelines.