NYMEX Overview: Crude Advances as Refined Products Retreat

Dow Jones
2 hours ago

Crude futures rose midday Thursday, while refined product contracts fell as traders weighed persistent Middle East shipping risks against recovering regional crude supplies and concerns about global demand.

As of 11:40 a.m. ET, November West Texas Intermediate was trading $2.38 higher at $97.47/bbl, with the December WTI contract up $2.05 at $95.95/bbl. December ICE Brent crude rose 21cts to $106.27/bbl, with the January contract up 16cts at $103.62/bbl.

Refined product futures were trading lower. November ULSD fell 7.55cts to $4.8519/gal, with December down 8.15cts at $4.6693/gal. The November RBOB contract was trading 5.52cts lower at $3.2043/gal, with December down 4.07cts at $3.1013/gal.

The WTI 3:2:1 crack spread was down $5.18 to $59.98/bbl, and the Brent 3:2:1 spread fell $2.96 to $51.23/bbl.

The Brent-WTI spread had widened to nearly $14/bbl amid elevated freight rates associated with the closure of the Strait of Hormuz, according to Ritterbusch & Associates. The firm described the spread as unsustainably wide and said it could narrow further toward $8/bbl.

Shipping risks remain elevated following attacks on vessels near the Strait of Hormuz, even as Middle East crude exports recover. The International Energy Agency reported Wednesday that Gulf crude shipments rose by 4.4 million b/d to 13.9 million b/d in September, exceeding 75% of prewar levels. The agency cautioned that renewed attacks on energy infrastructure and shipping could jeopardize the recovery.

The IEA said Thursday that emergency oil stock releases by member countries would exceed the 400 million bbl agreed to in March. About 330 million bbl have been released so far, with members pledging to expedite the remaining 100 million bbl, including more than 20 million bbl of diesel.

Reporting by Allegra Fradkin, afradkin@opisnet.com; Editing by Michael Kelly, mkelly@opisnet.com

 
 

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