Group 3 CBOB Basis Climbs 8.5cts, Diverges Midwest Declines


   
Barani Krishnan
DTN Refined Fuels Market Reporter

   SECAUCUS, NJ (DTN) -- Group 3 CBOB differentials surged Wednesday (9/2) into 
positive territory, defying broad weakness across Midwest pipeline networks 
where cash values faced downward pressure following a weekly rise in regional 
inventory. 

   Group 3 CBOB basis surged by 8.5cts on the day to stand at a premium of 
6.25cts gallon over the October NYMEX RBOB contract. The rise extends the 
physical strength of late in Group 3 CBOB, since NYMEX RBOB's front-month moved 
to October from September.

   In contrast, CBOB differentials on the Chicago market weakened by 3.5cts to 
a discount of 15cts gallon against the October NYMEX benchmark.

   CBOB differentials on the Buckeye Complex market widened by 3cts to an 11cts 
gallon discount to October futures, while Wolverine CBOB dropped 7cts on the 
day to a 15cts gallon discount.

   In NYMEX trading, October RBOB settled down $0.0313 at $3.1038 gallon. The 
U.S. Energy Information Administration reported that PADD 2 motor gasoline 
stocks rose100,000 bbl during the week ended August 28 to a five-week high of 
43.4 million bbl.

   PADD 2 refinery utilization rose to 103.5% last week from 101.8% the prior 
week, maintaining ample supplies of secondary gasoline blendstock across 
Midwest markets.

    

    




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