2000-02-04 09:46:15 EST
***SPOT DIESEL AND HEATING OIL APPROACH $1.75 GAL IN N.Y. HARBOR

2/4 - (9:40 A.M. EST) - Desperation has reached new levels today in the northeastern spot market with buyers willing to pay "ridiculously" high prices to lock in bbls that can move over the weekend.

With the NYMEX yet to open, but overnight levels were around 78.25cts gal for March futures. Spot buyers are willing to pay as much as 95cts gal OVER the screen to secure prompt oil, or an incredible $1.73 gal this morning. Brokers told OPIS that they believe that a ready-to-load barge or prompt pipeline piece for dispatch on the Buckeye Pipeline may go for as much as $1.00 gal over the Merc before the day is over.

There is virtually no distinction between the prices that will be paid for heating oil, diesel fuel, or kerosene in New York Harbor. Out of the chute this morning, the starting point for talk on all of these products will be right around $1.75 gal.

The market has also extended its gains forward into mid-February with buyers willing to pay 50-60cts gal over the NYMEX to secure bbls.

OPIS will update these prices regularly throughout the day as we anticipate one of the most volatile spot sessions on record.

- Tom Kloza, tkloza@opisnet.com

-- rocky (rknolls@no.spam), February 04, 2000

Answers

Harbor Guy,
Where are you? Any news on barge traffic this morning?

-- Possible Impact (posim@hotmail.com), February 04, 2000.

Desperation has reached new levels today.....

That about sums it up!

-- (4@5.6), February 04, 2000.

Desperation is Ok to say. Whatever you do, just don't say the "P" word.

-- Teague Harper (tharper@cyberhighway.net), February 04, 2000.

Harbour Guy,

Any especially "colorful" quotes being made on this little puppy?

-- Hokie (Hokie_@hotmail.com), February 04, 2000.