Nymex Overview: Futures Stumble as WTI Drops Below $70, Products Following -- OPIS

Dow Jones11-12

Steep losses across the board were seen Monday, and while there are still a few levels of support, the lows from September appear to be back in play.

The selling has been aggressive, with activity appearing robust to start the week. The market took a bearish view after a Chinese stimulus package was considered a disappointment, which brings demand back into question.

December West Texas Intermediate dropped briefly below $68/bbl and hasn't had much of a bounce after trading as low as $67.97/bbl. On Oct. 29, WTI traded as low as $66.72, and as the recently acquired length is liquidated, that level may come into play at some point this week.

December WTI is down $2.32 at $68.06/bbl, while the Brent contract is acting similarly, trading down $2.21 at $71.66/bbl. Brent has so far traded as low as $71.57 Monday, about 50cts higher than the Oct. 30 low.

Refined products are down, but the declines aren't quite as steep as they are for crude oil as losses are in the 4.5cts area. On an equivalent basis, crude oil is down over 5cts/gal.

Front-month RBOB traded as low as $1.9604 and was last trading at $1.9658/gal, down 4.67cts with the front-month ULSD contract trading at $2.1957/gal, down 4.32cts. The front end of the curve was seeing the smaller losses, and that helped narrow some of the contango in ULSD futures while the backwardation in RBOB is narrowing slightly.

With the paper declines, cash gasoline markets are now below the $2/gal level, and CARBOB in California is the lone exception. However, the San Francisco CARBOB's flat price is closing in on falling below $2/gal. East of the Rockies, Chicago CBOB is the lowest in the country and is close to slipping below the $1.80 mark.

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 Denton Cinquegrana, dcinquegrana@opisnet.com; Editing by Michael Kelly, mkelly@opisnet.com

(END) Dow Jones Newswires

November 11, 2024 12:40 ET (17:40 GMT)

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Nymex Overview: Futures Stumble as WTI Drops Below $70, Products Following -- OPIS

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