Spot Product Prices in Midwest Markets Tumbling at Midday

    

   BURLINGTON, Vt. (DTN) -- Spot market oil product prices in Oklahoma Group 3 
and Chicago are posting sharp losses at midday Friday, tracking a retreat in 
October heating oil and RBOB gasoline blendstock futures traded on the New York 
Mercantile Exchange.

   Open market trading has been extremely light in both heartland regions ahead 
of the upcoming three-day Labor Day holiday.

   NYMEX oil futures rallied after the U.S. employment rate in August showed a 
larger-than-expected increase in private sector jobs created, although losses 
in public payrolls resulted in a net-loss of 54,000 jobs overall that fixed the 
unemployment rate at 9.6 percent. 

   Despite solid gains in equities and weakness in the U.S. dollar, NYMEX 
traders sent paper prices plunging late morning, with October No.2 oil futures 
leading the sell-off, plummeting 3.69cts to $2.0255 gal at midday, and October 
RBOB futures posting a 3.36cts session loss at $1.8880 gal. Frontline crude oil 
futures were $1.34 lower on the day, trading $73.68 bbl at press time.

   X-grade ultra-low sulfur diesel fuel in the Group has tumbled 3.93cts to a 
notional $2.0955 gal, bid for prompt Magellan Pipeline delivery at a 7.0cts 
futures premium.

   ULSD in the Windy City is talked either side of a 7.75cts futures premium 
for first cycle September generic pipeline delivery that backs implied spot 
price down 3.43cts to $2.1030 gal.

   Conventional N-grade regular no lead in the Group has moved 3.11cts below 
its Thursday closing range to an implied $2.0005 gal, offered for prompt MPL 
delivery at an 11.25cts premium over the October NYMEX RBOB futures print. 

   Conventional regular no lead in Chicago is assessed for prompt cycle generic 
pipeline offtake at a 10.25cts futures premium that pares spot price by 3.36cts 
to a notional $1.9905 gal.

   G.Bud deGorgue, 1.802.524.1784, bud.degorgue@telventdtn.com,

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