In the latest market update, crude and RBOB futures saw an upward trend, while ULSD prices were on a downward trajectory.
Crude Oil Prices Surge
During midday trading, April West Texas Intermediate surged by 51cts/bbl to reach $77.54/bbl, with April Brent prices also climbing 41cts/bbl to $82.75/bbl.
Speculative Buying Fueled by Red Sea Activity
Speculative buying in crude oil was influenced by recent activity near the Red Sea. However, price ceilings of approximately $79/bbl for WTI and $84/bbl for Brent seem secure ahead of the upcoming Weekly Petroleum Status Report from the Energy Information Administration.
Refinery Runs Under Scrutiny
Anticipation surrounds the delayed release of the report, with a key focus on refinery runs. Information suggests that U.S. refining operations continue to face constraints due to maintenance, potentially operating 500,000 b/d to 1 million b/d below last year’s levels.
Shifting Margins in Refining Sector
Refining margins have dipped overall, reflecting losses in diesel and jet fuel prices. Conversely, gasoline prices have shown strength, with March RBOB increasing by 1.65cts/gal to $2.3939/gal.
Market Movement Highlights
- Gasoline prices rose across bulk venues monitored by OPIS
- ULSD futures witnessed a decline of 2.56cts/gal
- Ethanol prices remain subdued, with some areas recording prices below $1.35/gal