Petroleum Futures Update

Petroleum futures have been trading in a tight range, showing little commitment from traders throughout the month.

Current Market Trends

• Brent crude saw a morning trading range of less than 80cts/bbl, while West Texas Intermediate crude fluctuated within a $1.10/bbl range.

• As of midday, May Brent contract was up by 42cts to $82.57/bbl and NYMEX April WTI contract was 52cts higher at $79.07/bbl.

Market Outlook

The current crude futures prices indicate expectations that OPEC+ will extend production cuts into the second quarter. However, if this decision doesn't materialize, it may lead to a reassessment of the typical strong March performances for crude and RBOB.

OPEC+ Decision

Member nations of OPEC+ are anticipated to make a decision regarding the extension of production cuts in the upcoming weeks.

Gasoline Futures Movement

Gasoline futures have been witnessing some buying interest, with the NYMEX March RBOB contract up by 1.98cts to $2.2908/gal and April 2.94cts higher at $2.5806/gal.

Spot Market Highlights

Positive price movements were observed in various U.S. spot markets, with gasoline prices increasing by 3-8cts/gal in locations such as Los Angeles, San Francisco, and the Pacific Northwest.

Phillips 66 Refinery Adopts Bio-Feedstocks, Tightening Supply

Phillips 66 has reportedly shifted away from processing crude at its Rodeo, Calif., refinery in favor of bio-feedstocks. This strategic move, along with refinery maintenance activities in the region, is expected to result in a tighter supply scenario.

Gasoline Prices Surge in East of the Rockies Markets

Cash gasoline prices in markets East of the Rockies experienced an uptick, particularly in the range of 1-4 cents per gallon. The Chicago market saw continued tightening, with CBOB and RBOB prices ranging from $2.51 to $2.55 per gallon.

U.S. Retail Gasoline Prices Reach Highest Level Since November

Despite a slow start for gasoline futures this year, the average U.S. retail price surpassed $3.318 per gallon on Thursday, marking the highest recorded number since November 19, as per OPIS/AAA data.

Diesel Futures Show Modest Rally Amid Early Spring Weather

Diesel futures showed signs of a modest rally, despite warm spring-like weather in many states where the fuel is used for heating purposes. The NYMEX March ULSD contract, set to expire at the end of Thursday's session, rose by 3.45 cents to $2.6928 per gallon. The April contract also saw an increase of 3.88 cents to $2.6648 per gallon around midday.