While crude oil futures continue to fluctuate within a wide $70-$90/bbl range, both West Texas Intermediate and Brent contracts made gains on Monday, rebounding from the previous week’s losses. Despite the absence of significant market-moving developments, some positive movements were observed.
NYMEX April WTI Contract
The NYMEX April WTI contract rose by 75 cents to $77.24/bbl by midday. Despite signs of a relatively tight North Atlantic market, subdued refinery runs in North America have contributed to higher inventories.
Brent Crude
Brent crude experienced a slight uptick of 53 cents to $82.15/bbl, with limited noticeable trends in international markets.
Gasoline Market Updates
In California, the transition to a summer-grade RVP specification resulted in a nearly 28 cent/gallon increase in Bay Area spot CARBOB prices on Monday. California spot gasoline prices now stand approximately $28.50/bbl above sweet crude benchmarks as regulators aim to establish a maximum margin through pending regulations.
NYMEX March RBOB Contract
The NYMEX March RBOB contract saw a 3.21 cent increase to $2.3088/gal, while the April contract, reflecting summer-grade fuel, rose by 3.86 cents to $2.5479/gal. Spot prices across most U.S. regions increased by 3-5 cents/gal, except for Chicago where a slight decrease of about 2 cents/gal was observed.
Retail Gasoline Prices and Outlook
Retail gasoline prices have remained relatively stable in the second half of February, but an increase in prices is typically anticipated as March approaches. The average U.S. retail price so far this year has held at $2.999/gal.
Diesel Market Performance
Diesel prices were supported by a tight North Atlantic market and strong U.S. exports. The NYMEX March ULSD contract increased by 4.52 cents to $2.7349/gal near midday.