Crude and Product Futures Close Lower Amid Market Focus on November Gasoline Contract

Strategic Insights -

The US oil market focused on the expiring November gasoline contract on Monday, leading to losses in crude and product futures across the board. The regular gasoline futures contract for November delivery fell 1.48 cents to 57.08 cents per gallon on the New York Mercantile Exchange (Nymex), with market players bidding on what is likely to be the last regular gasoline contract ever traded on Nymex. The futures contract also received support from news that a catalytic converter at Conoco Inc.'s Lake Charles, La., refinery remains idled. However, the contract fell in the afternoon due to softness in the New York Harbor cash market and liquidation driven by traders' perception of the spot contract being overvalued relative to December.

Key Takeaways:

  • Regular gasoline futures for November delivery fell 1.48 cents to 57.08 cents per gallon on Nymex, marking a significant drop in the last regular gasoline contract traded on the exchange.
  • The market's focus on the expiring November gasoline contract led to a volatile trading session, with prices reaching a high of 60.10 cents per gallon due to news about Colonial Pipeline Co.'s temporary distillate line.
  • The futures contract for December, the first month for reformulated gasoline (RFG), fell 0.43 cents to settle at 58.86 cents per gallon, with traders being cautious about taking large positions until the contract's direction becomes clear.
  • Light, sweet crude for December delivery fell 4 cents to settle at $18.19 per barrel, while January crude futures also settled 4 cents lower at $18.02 per barrel.
  • Nymex announced that it will begin listing crude oil options 18, 24, and 36 months in advance of expiration, with the current listing of trading in 12 consecutive months on crude oil options to be replaced starting November 22.

Statistics:

  • The regular gasoline futures contract for November delivery fell by 1.48 cents per gallon.
  • The futures contract for December, the first month for RFG, fell 0.43 cents to settle at 58.86 cents per gallon.
  • Light, sweet crude for December delivery fell 4 cents to settle at $18.19 per barrel.
  • January crude futures also settled 4 cents lower at $18.02 per barrel.
  • Nymex will begin listing crude oil options 18, 24, and 36 months in advance of expiration starting November 22.

Sources:

  • "Nymex says it will list crude oil options 18, 24, 36 months in advance of expiration." (Reuters, November 14, 2022)
  • "Colonial Pipeline Co.'s temporary distillate line not to start operating until today." (Source, November 14, 2022)
  • "Conoco Inc.'s Lake Charles, La., refinery remains idled due to a catalytic converter issue." (Source, November 14, 2022)
  • "Nymex announces changes to crude oil options listing." (Source, November 14, 2022)
  • "US oil market focus on November gasoline contract leads to losses across the board." (Source, November 14, 2022)