Gasoline and Crude Futures Rally as Distillates Lag on NYMEX

The NYMEX March RBOB contract rose 3.363 cents to $1.9897 per gallon by late morning, supported by reports of motor fuel cargoes heading to Nigeria. According to ship-tracking data from Vortexa, four cargoes of gasoline and blending components have landed in the country since mid-January, with two additional shipments currently in transit. This influx comes as the 650,000 b/d Dangote refinery completes a maintenance cycle and prepares to ramp up to full capacity.

Crude benchmarks followed the upward trend, with both West Texas Intermediate and Brent gaining significant ground. The March WTI contract climbed $1.21 to $64.76 per barrel, while the April Brent contract rose $1.22 to reach $69.27 per barrel shortly before midday. The gains in the gasoline sector helped trim the contango between the March and April RBOB contracts, signaling a slight tightening in the immediate outlook.

Inventory Pressure on Diesel

In contrast to the rally in light products, distillate futures struggled to find positive territory despite freezing temperatures across much of the United States. Although the cold snap has kept heating demand elevated, ULSD inventories have remained robust. The March ULSD contract slipped 0.35 cents to $2.4098 per gallon, after hitting a daily low of $2.3677 earlier in the session.

Market analysts suggest that the weakness in distillates is being compounded by a sharp decline in natural gas futures. These lower gas prices typically act as a ceiling for diesel contracts, offsetting the seasonal demand boost from the power and heating sectors. As a result, the distillate market remains the primary outlier in an otherwise bullish session for energy commodities.