Some players are buying cheap prompt fuel to store in their storage tanks, betting on higher prices in summer.
The strong buying interest is reflected in the firm cash basis for gasoline so far this week. This is despite a relatively high inventory and a strong push for gasoline barrels up the Colonial pipeline to the Northeast.
Recently, the Colonial Line 1, which delivers gasoline, was fully allocated for Cycles 22-23.
In the New York Harbor cash market, Cycle 18 Colonial conventional regular M2 barrels were traded actively.
C18 M2 was done at 10.00-10.45cts under the screen, and C19 was done at 10.35cts under. C18 barrels will be delivered on April 18-19, and C19 is on April 23-24.
F2 summer RBOB for delivery by April 20 was done at 50-75pts under, and ratable May barrels were traded at 1.5cts under June screen.
In the distillates market, prompt heating oil was at 2.5cts under, remaining under pressure from a weakening demand, high inventory and higher-than-normal temperatures.
LSD was at 1.5cts over, and ULSD and jet fuel were on par at 4.25cts over. Kerosene was at 8.5cts over.