DTN Oil Update
ULSD Up 53% in Q3 Rally; Gasoline Stocks at Historic Lows
SECAUCUS, N.J. (DTN) -- Distillate futures surged more than 53% over the third quarter as September delivered another strong month for U.S. energy markets, propped up by persistent refined product deficits, historic gasoline inventory draws and unyielding geopolitical risk premiums across the Middle East.
Crude and refined fuel benchmarks secured a third consecutive monthly increase as tight global supply and the protracted U.S.-Iran war outweighed partial export recoveries from Saudi Red Sea ports.
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Downstream contracts surged in their final session for September amid precariously low product supplies. Distillate stocks remained severely constrained globally, with EIA reporting domestic inventories trailing the five-year average by more than 13%. High international demand and impaired processing capacity from the Persian Gulf to Russia have kept fuel markets under steady upward pressure despite ongoing diplomatic talks.
Energy Information Administration (EIA) data released Wednesday showed U.S. motor gasoline inventories down for a second straight week, falling by 1.7 million bbl to 204.4 million bbl to reach the lowest national level since November 2014. In the Midwest, gasoline stocks plunged 1.8 million bbl to 41.8 million bbl, marking an all-time regional low since EIA data collection began in December 1989.
At Wednesday's close, NYMEX November WTI crude rose $1.04, or 1.16%, to settle at $90.42 bbl, after reaching a session high of $91.96. For all of September, WTI advanced about 6%, while for the third quarter it climbed almost 31%.
ICE November Brent moved up $0.91, or 0.89%, to $103.50 bbl, after an intraday high at $104.05. Brent rose about 17% on the month and 42% over the three-month period.
NYMEX ULSD for October delivery climbed $0.0590, or 1.20%, to close at $4.9569 gallon, after peaking at $5.4275 during the session. October ULSD rose 12% for September and 53% over the quarter.
RBOB for October advanced $0.1596, or 4.87%, to finish at $3.4378 gallon, with an intraday high at $3.3887. It gained 10% for the month and 17% for the quarter.
By 2:25 p.m. EDT, the U.S. Dollar Index gained 0.064 points on the day to 101.180 against a basket of currencies.
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