N.Y.H, Gulf Coast Spot Products Ride Futures Rally Higher

    

   BURLINGTON, Vt. (DTN) -- Spot market oil product prices at the Texas Gulf 
Coast and in the New York Harbor moved higher Thursday afternoon, riding a 
second day of advances in benchmark October heating oil and RBOB gasoline 
blendstock futures traded on the New York Mercantile Exchange.

   Cash market trading was active, with traders and refiners positioning in 
front of the long Labor Day holiday weekend.

   NYMEX crude oil and oil product futures remained in a short-term uptrend, as 
noncommercial market speculators bid prices higher in reaction to a moderate 
advance in equities and continued weakness in the U.S. dollar on world currency 
markets.

   October RBOB futures led paper prices higher, surging 3.25cts to $1.9216 gal 
at settlement, with the frontline heating oil futures contract posting a 
2.12cts session gain at $2.0623 gal. October crude oil futures surged $1.11 to 
finish the day at $75.02 bbl.

   Gulf Coast M1 southern summer grade regular closed out the summer driving 
season trading at a penny futures premium in front of scheduling deadlines for 
Colonial Pipeline's 50th cycle that boosted spot price 2.75cts to $1.9316 gal. 
M2 9.0psi topped M1 by trading 1.75cts over the MERC for 50th cycle CPL 
transport with spot price surging 4.25cts to $1.9391 gal ahead of 50th cycle 
CPL tender deadlines. Gasoline quality for Colonial Pipeline's 51st cycle 
shifts to 11.5psi RVP grades on Friday (9/3). Conventional V1 and V2 
conventional premium no lead grades remained indexed at 10.0cts regrades for 
50th cycle CPL trade. F3 11.5psi RBOB sold for prompt CPL shipment at a penny 
futures discount that boosted spot price by 3.25cts to $1.9116 gal and H3 PBOB 
maintained an 11.0cts regrade for prompt cycle CPL trade. A1 CBOB narrowed to 
price parity with M1 no lead that moved spot price 3.5cts above its day prior 
closing range to $1.9316 gal and D1 premium CBOB was priced at a 9.0cts regrade 
at an implied $2.0216 gal.

   Conventional M2 regular no lead in the Harbor traded for barge loading on 
Sept. 10 at a 2.0cts futures premium that boosted spot price 2.75cts to $1.9416 
gal. F2 RBOB traded at a 1.75cts MERC premium for barge lifting on the 10th 
sending spot price soaring 5.0cts to $1.9391 gal. Conventional V2 premium was 
talked 7.0cts over the MERC for prompt trade, and H2 PBOB jumped 3.5cts to 
$2.0241 gal on a prompt trade booked at a 10.25cts futures premium. CBOB was 
notionally talked at a 1.25cts MERC premium and premium CBOB 5.0cts over the 
frontline RBOB futures print.

   Ultra-low sulfur 61-grade diesel fuel at the Gulf Coast edged up 1.47cts to 
$2.0808 gal, trading in front of 50th cycle Colonial Pipeline scheduling at a 
1.85cts futures premium. High sulfur 88-grade heating oil ramped up 2.12cts to 
$2.0173 gal, changing hands for 51st cycle CPL transport at a 4.5cts futures 
discount.

   Ultra-low sulfur diesel fuel in New York Harbor inched 0.62cts higher to 
$2.1323 gal, trading for prompt offline Colonial Pipeline Harbor delivery at a 
7.0cts futures premium. No.2 heating oil was reported sold for prompt Buckeye 
Pipeline shipment at a 1.75cts MERC discount that moved flat price 1.87cts 
above its day prior closing range to $2.0448 gal. 

   G.Bud deGorgue, 1.802.524.1784, bud.degorgue@telventdtn.com, 
www.telventdtn.com (c) 2010 Telvent DTN. All rights reserved.