Crude oil and refined product contracts were pulling back Friday but remained on track for strong weekly gains despite the day’s losses.
The losses came despite the release of Commerce Department data earlier in the morning showing inflation slowing at the end of last year.
Crude contracts were seeing losses approaching $1/bbl, with the March NYMEX contract for West Texas Intermediate crude sinking 92cts to $76.44/bbl while April prices fell 90cts to $76.29/bbl at about 11:45 a.m. ET. Brent crude losses were lighter, with the Globex contract for March falling 79cts to $81.64/bbl while April prices moved 82cts lower to $81.14/bbl.
The steepest losses of the day were in ULSD contracts, with the February contract shedding 4.35cts to $2.7519/gal while March prices were off by 4.3cts to $2.7225/gal.
Gasoline contracts were seeing lighter losses, with the front-month contract falling 2.57cts to $2.2387/gal while March prices moved 2.4cts lower to $2.2670/gal.
The losses come amid some profit-taking as energy prices have enjoyed gains over the last week amid ongoing tensions in the Red Sea and word of economic stimulus efforts in China.
WTI prices were about 4.2% ahead on the week heading into lunchtime Friday while Brent crude was about 3.9% higher.
Despite Friday’s steep losses, ULSD is poised to end the week 3.4% higher while RBOB futures are 3.3% ahead of last week’s settlement.
Losses in the futures market were sending diesel and gasoline prices lower in most spot markets around the nation, though gasoline prices in Los Angeles and the Pacific Northwest were seeing gains of just under 1ct/gal ahead of a transition from high to low RVP for Los Angeles CARBOB.
Renewable Identification Number prices were continuing to see steep losses, with D6 ethanol RINs falling 8cts to 58.5cts while D4 biodiesel RINs were 8.25cts lower to 59.5cts.
Both RINs have fallen for 11 straight days, with market participants on Thursday describing conditions as “bottomless.” The losses come amid weaker prices for soybean oil and stronger heating oil prices, which affects the economics of biofuels blending and influences RIN pricing.
Energy contract were falling despite the Commerce Department releasing data Friday showing a 0.2% increase in the core personal consumption expenditures price index in December, representing a 2.9% annual gain.
The data indicates efforts to lower inflation are having an impact and could lead to the Federal Reserve cutting rates later this year.
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 Steve Cronin, [email protected]; Editing by Michael Kelly, [email protected]
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