MARKETWIRE ALERTS

MARKETWIRE ALERTS

MARKETWIRE ALERTS 

MarketWire Afternoon News for September 2^nd  

Updated at 5:00 PM ET 

HEADLINES:

— Oil Futures Rise on Geopolitical Tensions; Ahead of OPEC+ Decision

— LA CARBOB Regular Basis Rallies Over 20cts

— Oil Prices Rise as US Looks to Stymie Russian Flows

— PBF Plans Flaring at Torrance Plant August 31-Sept 11

NEWS:

Oil Futures Rise on Geopolitical Tensions; Ahead of OPEC+ Decision

Oil futures moved higher Tuesday as escalating military action in the Russo-Ukrainian war, stepped-up U.S. pressure on Russian crude buyers, fresh sanctions targeting Iran’s oil smuggling networks in Iraq, and the approaching OPEC+ meeting lifted prices, while the U.S. summer driving season officially ended with Monday’s Labor Day holiday.

NYMEX West Texas Intermediate for October delivery settled $1.58 higher at $65.59 bbl, and the international crude benchmark ICE November Brent contract gained $0.95 to $69.10 bbl. October RBOB futures fell $0.0739 to $2.0428 gal, while front-month ULSD climbed $0.1046 to $2.3744 gal. The U.S. dollar index advanced 0.630 points to 98.320.

Prices found support as U.S. Treasury Secretary Scott Bessent on Monday accused India and China of financing Russia’s invasion via oil purchases, warning of further enforcement measures. Although Russian crude flows to India have eased in recent weeks, vessel tracking data show shipments largely diverted to China, keeping overall exports steady. Ukrainian drone strikes on Russian refineries and intensified Russian attacks on Ukraine following the Trump-Putin meeting in Alaska further heightened the geopolitical risk premium. The Kremlin on Monday denied speculation of a trilateral U.S.-Russia-Ukraine summit.

Adding to the bullish backdrop, the U.S. on Tuesday announced new sanctions targeting Iran’s oil revenue stream, with measures aimed at pressuring Iranian oil smuggling and sanctions evasion schemes in Iraq. Meanwhile, OPEC+ is scheduled to meet Sunday to decide whether to unwind remaining voluntary cuts from eight members, including Saudi Arabia and Russia, that have kept prices supported in the $60 bbl range.

The U.S. summer driving season, typically the peak demand period in the world’s largest fuel market, wrapped up with Monday’s Labor Day holiday, signaling the start of a slower consumption period heading into the fall.

LA CARBOB Regular Basis Rallies Over 20cts

Basis for reformulated gasoline California Air Resources Board fuel standards rallied Tuesday in both Los Angeles and San Francisco gasoline from where it was last seen trading on Friday.
September Los Angeles CARBOB regular basis climbed by 24cts to a 61cts premium to October NYMEX RBOB futures after a trade was reported at that level. San Francisco CARBOB premium basis spiked in tandem by 24cts to a 70cts premium.
San Francisco CARBOB regular increased by 10cts to a 52cts premium to October NYMEX RBOB futures. The San Francisco CARBOB market holds an 8ct spread to its premium, which lifted San Francisco premium basis values by 10cts to a 60cts premium to October futures. 

The sharp gains in gasoline differentials in Los Angeles and San Francisco come due to ongoing flaring at PBF Energy’s 166,000 bpd Torrance refinery, adding to supply concerns in California’s spot market.

Oil Prices Rise as US Looks to Stymie Russian Flows

Oil prices rose Tuesday morning as ramped up military action in the Russo-Ukrainian war have rendered an imminent peace deal increasingly unlikely. At the same time, the U.S. has been reiterating a willingness to punish buyers of Russian oil and step up sanctions’ enforcement in conjunction with European allies.

NYMEX-traded WTI for October delivery rose $0.83 to trade near $64.84 bbl, and ICE Brent for November delivery gained $0.23 to $68.38 bbl.

October RBOB gasoline futures added $0.0471 to $2.0160 gal, and the front-month ULSD contract was up $0.0614 to $2.3312 gal.

The U.S. dollar index strengthened by 0.765 points to 98.455.

U.S. Treasury Secretary Scott Bessent on Monday called India and China “bad actors”, accusing them of financing Russia’s invasion via their oil purchases. Russian crude oil flows to India have been dropping in recent weeks, but overall crude exports from Russia were stable as these shipments were largely diverted to China, according to vessel tracking data.

Ukrainian drones struck multiple refineries inside Russian territory as Russia intensified its strikes on Ukraine following the Trump-Putin meeting in Alaska. The Kremlin in a statement yesterday denied that a trilateral meeting between the leaders of the U.S., Russia and Ukraine is being planned. Mounting tensions and waning prospects of an imminent peace deal have raised the geopolitical risk premium on oil and helped shift sentiment into less bearish territory.

PBF Plans Flaring at Torrance Plant August 31-Sept 11

PBF Energy notified regulators it expects flaring at its 166,000 bpd Torrance, California, refinery to run from August 31 at 10:53 p.m. PT through September 11 at 11:59 p.m. due to startup and shutdown activity, according to a filing with the South Coast Air Quality Management District.