Crude and refined product futures contracts were all moving higher Friday, putting oil and RBOB prices on track to end the week with strong gains.
U.S. oil prices were topping the $90/bbl mark at about 11:15 a.m. ET, with the November contract for West Texas Intermediate crude ahead 94cts to $90.31/bbl, more than 40cts off earlier highs. The December contract was 97cts higher to $89.34/bbl. The front-month contract is nearly $3/bbl higher than where it started the week.
December Brent crude saw gains of 99cts to $93.37/bbl while January prices rose by $1.03 to $92.04/bbl.
ULSD contracts, which have swung between gains and losses throughout the week, appeared poised to head into the weekend with losses for the week despite the day's gains. The November contract was rising 3.08cts to $3.2038/gal, about 0.8cts below where it ended last Friday. December prices were 3.82cts higher to $3.1156/gal.
RBOB futures were heading for week-to-week gains, with the front-month contract climbing 2.26cts to $2.3843/gal, nearly 12cts higher than last week. The December contract saw gains of 2.45cts to $2.3675/gal.
Energy markets have spent the week being buffeted by competing factors, as the ongoing war between Israel and Hamas has raised concerns that supply could tighten while news that the U.S. is easing some sanctions on Venezuelan oil exports and uncertainty over future action by the U.S. Federal Reserve to cool economic action as it fights inflation raises worries about slowing demand amid increased supply. Oil prices Friday are also being boosted by the Biden administration's announcement Thursday that it would seek to purchase 6 million bbl of oil for the Strategic Petroleum Reserve at a price of about $79/bbl.
Spot markets around the country were seeing widely varied movement in gasoline and diesel prices. In the Gulf Coast, a change in specification is sending RBOB prices more than 4cts/gal lower, with the spot price of about $2.25/gal the lowest in the country by about 5cts. Meanwhile, refinery issues and concerns about supply have sent diesel prices in Group 3 about 11cts higher, with prices approaching a one-year high.
Renewable Identification Number prices were moving lower Friday after seeing gains earlier in the week. D6 ethanol-based RINs were 1.37cts lower while D4 biodiesel RINs had fallen by 1.38cts.
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 Steve Cronin, scronin@opisnet.com; Editing by Michael Kelly, mkelly@opisnet.com
(END) Dow Jones Newswires
10-20-23 1221ET
