A buying spree emerged in crude oil and refined product futures markets Monday, with August West Texas Intermediate jumping to the highest trading levels since April 30.
August WTI briefly crossed the $83 mark as geopolitical tensions and "just in case" buying ahead of Hurricane Beryl in the Caribbean pushed prices higher.
There was also some technical buying, with trade sources noting that diesel has gotten through some resistance.
Both RBOB and ULSD for August were up more than 6cts on the day through midday as the August ULSD contract last traded at $2.594/gal after briefly topping the $2.60/gal level. The largest cash moves have been on the Gulf Coast where discounts for ULSD have narrowed slightly.
The RBOB contract has picked up nearly 6.5cts as August traded up to $2.57/gal earlier with last week's highs just over $2.58/gal in sight. Cash markets are also on the rise with RBOB futures, with the Gulf Coast seeing some additional buying and prompt CBOB discounts narrowing by more than 2cts at midday to 22.5cts under futures. New York Harbor cash differentials also firmed up with the new reference month.
Crude oil futures are rallying with WTI trading at $82.86/bbl, up $1.31, and the now-prompt September Brent contract trading at $86.28/bbl, up $1.28. August Brent reached as high as $87.22/bbl last week.
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 Denton Cinquegrana, dcinquegrana@opisnet.com; Editing by Michael Kelly, mkelly@opisnet.com
(END) Dow Jones Newswires
07-01-24 1301ET
