N.Y.H., Gulf Spot Products Topple with Futures Reversal

    

   BURLINGTON, Vt. (DTN) -- Spot market oil product prices in New York Harbor 
and at the Texas Gulf Coast are posting steep losses late Friday morning, as 
the futures pendulum swings back to the downside despite reasons for optimism 
after the release of the latest jobs data from the Labor Department.

   Cash market trading has so far been on the light side in front of the 
upcoming long holiday weekend.

   Crude oil and oil product futures rallied after the latest government survey 
indicated the U.S. economy added 67,000 new jobs in the private sector in 
August with figures for July adjusted upward to a 107,000 job increase. Paper 
prices failed to hold early gains after a further study of the data revealed 
the overall number of jobs fell 54,000 in August due to a drop in the public 
sector that nudged the unemployment rate to 9.6 percent.

   Futures prices were near session lows late morning, with noncommercial 
market speculators opting to take profits despite an upturn in equities markets 
and downturn in the U.S. dollar.

   October RBOB futures were trading down 4.26cts to $1.8795 gal at press time, 
with October heating oil future posting a 4.08cts loss at $2.0215 gal. 
Frontline crude oil futures were $1.68 in the loss column, trading $73.34 bbl 
at last check.

   Gulf Coast gasoline grades have rolled to 11.5psi RVP quality as prompt 
trading rolls to Colonial Pipeline's 51st cycle. M3 conventional regular has 
traded at futures premiums of 1.5cts, 1.35cts and 1.6cts gal that sets spot 
price at $1.8955 gal. 

   Conventional M2 regular in the Harbor has tumbled 3.71cts to a notional 
$1.9045 gal, priced for prompt trade at a 2.5cts futures premium, and M4 winter 
grade regular was reported sold for Sept. 20 barge loading at a 2.10cts MERC 
premium. F2 RBOB is assessed for prompt trade at a 1.75cts futures premium that 
sends spot price plummeting 4.21cts to an implied $1.8970 gal.

   Ultra-low sulfur 61-grade diesel fuel at the Gulf Coast has moved 3.33cts 
below its Thursday closing range to $2.0475 gal, trading on the rollover to 
Colonial Pipeline's 51st cycle at a 2.6cts futures premium. Ultra-low sulfur 
diesel fuel in New York Harbor is indicated for prompt cycle Colonial Pipeline 
Harbor delivery at a 7.0cts futures premium that backs implied spot price down 
4.08cts to $2.0915 gal. No.2 heating oil has plunged 4.33cts to a notional 
$2.0015 gal, indexed at a 2.0cts MERC discount for prompt barge/Buckeye 
Pipeline transit. 

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