NYMEX Midday: Big Reversal Hammers Crude and Products in First 2024 Session -- OPIS
January 02 2024 - 1:15PM
Dow Jones News
The first 2024 futures' session is already a microcosm of the
action seen during twelve months of 2023. Prices rallied higher
initially but the gains gave way to moderate losses thanks to a
lack of confidence in market stability.
February WTI traded for as much as $73.64/bbl but prices were
around $70.76/bbl at just before 12:00 p.m. ET, reflecting a loss
of 89cts/bbl. The plunge was helped by a very strong U.S. Dollar
that put downward pressure on all commodities. Also hurting crude
was a severe drop in U.S. equities, with particularly heavy damage
in the tech-heavy NASDAQ.
Brent performed similarly with March prices rising to
$79.06/bbl, only to recede to a $75.88/bbl low. At midday, March
Brent was off 73cts/b $76.32/bbl.
Refined products were mixed. Some colder-than-normal weather
lifted the European market and helped ULSD futures move modestly
higher. The February contract was up 0.85cts/gal at $2.5374/gal
after rising over $2.595/gal in the early morning.
Gasoline prices were weak as they often are in the poorest
demand month of the year. Year-on-year comparisons will be
interesting, since the end of 2022 saw gasoline demand of barely
8-million b/d. Higher run rates this year could lead to some
inventory builds before a modest winter turnaround season
commences.
February RBOB was off 0.78cts/gal at $2.0985/gal at midday but
it traded as high as $2.1717/gal earlier in the session.
Cash markets saw light action with all venues giving up ground
save for the Group 3 market where some buying pushed prices up by
2.60cts/gal. One positive that gasoline traders can cling to this
January comes by way of large discounts for spot gasoline in
several markets. Chicago gasoline is available for 41.5cts/gal off
futures. Traders assume that this might limit further losses that
come when high RVP fire sales generally occur.
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 Tom Kloza, tkloza@opisnet.com; Editing by Cory
Wilchek, cwilchek@opisnet.com
(END) Dow Jones Newswires
January 02, 2024 13:00 ET (18:00 GMT)
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