Nymex Overview: Petroleum Futures Continue to Soar — OPIS

Petroleum futures prices were higher, as a third day of increases are fueled by increased tensions between Israel and Iran.

Oil futures were seeing gains approaching $3 on Thursday, while refined product prices were increasing by nearly 8cts.

The move higher reflects market worries over how Israel will respond to Iranian missile attacks launched earlier this week. Israel has vowed a strong response to the attacks, and worries are that any action against Iranian oil infrastructure, and subsequent Iranian action to block oil shipments through the Strait of Hormuz, could significantly disrupt global oil markets.

The Nymex November contract for West Texas Intermediate was up $2.78 to $72.88/bbl in active trading heading. The front-month contract is about $1 off earlier highs. December WTI was seeing gains of $2.62 to $72.31/bbl.

Brent crude had also eased off earlier peaks. December prices were up $2.86 to $76.76/bbl and January saw increases of $2.74 to $76.28/bbl.

November Nymex RBOB futures had risen 8.08cts to $2.0667/gal, more than a cent off earlier highs, while December prices were 7.93cts higher to $2.0324/gal.

The front-month ULSD contract had stepped up by 7.43cts to $2.2564/gal, while the December contract saw gains of 7.16cts to $2.2680/gal.

While RBOB futures are currently about 6.8% higher than Monday's settlement, U.S. gasoline prices have yet to catch up to the surging futures markets.

The national average cost of regular unleaded gasoline was $3.1904/gal Thursday morning, about 1.6cts/gal lower than Monday's average, according to OPIS pricing data. Diesel averaged $3.5713/gal Thursday, about 1.5cts/gal higher than Monday. ULSD futures are currently 4.7% higher than Monday.

Rising futures prices, however, are pressuring retailers, with the national average gross rack-to-retail margin for gasoline falling 2.8cts/gal from last week to 42.3cts/gal while diesel margins have fallen by 4.4cts/gal from a week ago to 53.1cts/gal, according to OPIS MarginPro data.

Margins are likely to fall even further on Friday, as the week's rise in prices continues to flow through markets.

Thursday's futures gains are also sending prices for gasoline and diesel soaring in spot markets around the country. Most markets are seeing prices for the fuels reflect gains in the futures markets, though in the Chicago market changes in gasoline prices are being measured only in fraction of cents.

This content was created by Oil Price Information Service, which is operated by Dow Jones & Co. OPIS is run independently from Dow Jones Newswires and The Wall Street Journal.

-- Reporting by Steve Cronin, scronin@opisnet.com; Editing by Andrew Atwal, aatwal@opisnet.com

(END) Dow Jones Newswires

October 03, 2024 12:32 ET (16:32 GMT)

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