The oil world seems ready, or even desperate, to take $100/b crude to the party. But while the dirty markets are still hunting for their bow ties, some US refined products are already bouncing across that dance floor. Low-RVP San Francisco 84-octane gasoline blendstock was assessed up $1.76/b at $1.0109/b Tuesday — its first day over the $100/b threshold since August 11, 2015. Los Angeles blendstock summited $100/b Monday. Of course, that’s the price on the Kinder Morgan pipeline. You’ll pay a lot more at the pump in Petaluma. The magic number in cents/gal for $100/b gasoline is 238. Low-octane fuel in Portland, Oregon, and Seattle was seen nearing that threshold Tuesday afternoon. One grade of product that’s far more like crude, the refinery feedstock vacuum gasoil, is on track to summit $100/b some time later this month. VGO at 20-25 API has a density lower than some crudes. It feeds a fluid catalytic cracker or hydrotreater to make gasoline and diesel. Differentials have been in the high teens against crude futures so far this fall, leaving Europe market players sending more barrels to US ports to leverage the arbitrage. Low-sulfur VGO barges at Los Angeles have held over $90/b… continue reading
Continue reading $100/b darlings of US oil could lead way for crude. This article appeared first on CTRM Center.
Source: CTRM Center