Prices Pulling Back Modestly

On September 27, 2013 by TradingDesk

The energy complex limped quietly higher Thursday following an equally tame equities market as debt limit banter and lack of pertinent news put traders to sleep. Brent-WTI spread traded sideways as well, stuck in the $5-6 range. Prices seem to be pulling back modestly this morning with RBOB and ULSD down a penny each at $2.6919/gal and $2.9925/gal respectively and WTI down about $.05/bbl.

Spot markets also took the day off with no product’s basis level offering to move more that 2.5 cents in either direction. Gulf coast prices didn’t budge as OPIS discussed an increase in Jones Act compliant tankers being ordered and built to deliver barrels to and from US ports. The idea behind their production would be to quickly fill supply voids along the coasts in the event of refinery disruptions or major price dislocations. An increase in product agility via US to US barge shipments could result in some market redistricting in the near future.

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