MARKETWIRE ALERTS
Maria Eugenia Garcia
DTN Energy Editor
MARKETWIRE ALERTS
MarketWire Afternoon News August 21th:
Updated at 6:00 PM ET
HEADLINES:
--Midwest Gasoline Basis Weakens on October RBOB Roll
--USWC Gasoline Basis Jumps on Futures Rollover
--Baker Hughes: Weekly North America Rigs DN by 8 to 804
--CFTC: WTI Bullish Positioning Rebounds on Week
--EPA Issues Waiver to End Summer-Blend Gasoline Early
NEWS:Midwest Gasoline Basis Weakens on October RBOB Roll
Midwest gasoline basis weakened Friday (8/21) as the market rolled to the
October NYMEX RBOB futures contract.
Chicago regular gasoline traded at a 23cts discount to October RBOB futures,
10cts weaker than the previous trading session.
Wolverine prompt gasoline was talked at a 19cts discount to the same
benchmark, down 9cts from Thursday, while Buckeye pipeline prompt regular
gasoline was indexed at a 14cts discount, 4ct weaker on the session.
Meanwhile, Group 3 sub-octane gasoline was talked at 5.5cts discount to the
October futures contract, 8cts weaker than Thursday's assessment.
Market sources attributed the Midwest gasoline basis weakness to this week's
rally in the futures market and the transition to the October contract, which
is trading at a steep backwardation. On Friday, September NYMEX RBOB futures
contract settled at $3.3479 gallon, while October was at $3.0468 gallon,
according to DTN data.
USWC Gasoline Basis Jumps on Futures Rollover
California gasoline basis jumped Friday (8/21), with Los Angeles CARBOB
regular climbing 35.50cts and San Francisco CARBOB regular rising 29cts as the
market rolled from September to October NYMEX RBOB futures.
Los Angeles CARBOB regular was heard traded at a 54cts premium to October
NYMEX RBOB futures, its highest level since May 4, when it was assessed at a
56cts premium, according to DTN Energy data.
San Francisco CARBOB regular was heard traded at a 50cts premium to October
NYMEX RBOB futures, the strongest since June 3, when it was assessed at a 77cts
premium, DTN Energy data showed.
"The sharp increase is mainly related to the rollover from September to
October futures," a source familiar with the West Coast gasoline market said.
"With the futures curve in strong backwardation, rolling the basis against the
lower-priced October contract mechanically increases the differential."
The basis jump outpaced the increase in physical prices. Los Angeles CARBOB
regular spot prices rose 11.53cts to $3.4432 gallon, while San Francisco CARBOB
regular increased 5.06cts to $3.6135 gallon, according to DTN Energy data,
supporting the view that much of Friday's basis increase reflected the futures
rollover.
CFTC: WTI Bullish Positioning Rebounds on Week
Money managers increased their bullish bets in NYMEX West Texas Intermediate
(WTI) crude during the week ended August 18 as a sharp reduction in short
positions combined with an increase in long positions, Commodity Futures
Trading Commission (CFTC) data showed Friday (8/21).
Noncommercial long positions in WTI held by money managers increased by
5,313 contracts to 320,159 during the reference week, according to weekly
Commitment of Traders data released by the CFTC.
Noncommercial short positions fell by 17,581 contracts to 198,069 during the
same week, the CFTC data showed.
This caused the net noncommercial long position in WTI to increase by 22,894
contracts to 122,090. Open interest, meanwhile, fell by 3,469 contracts to
1,888,960.
Noncommercial spread positions in WTI declined by 6,018 contracts to 598,872
during the same week.
Total long positions in WTI futures fell by 3,228 contracts to 1,813,852,
while total short positions declined by 2,672 contracts to 1,844,849.
Baker Hughes: Weekly North America Rigs DN by 8 to 804
North American energy drilling activity retreated this week, Baker Hughes'
weekly rotary rigs report released Friday (8/21) showed, with the regional
count falling by eight to 804.
Year on year, rigs for Canada and the United States combined were up 86 from
the 718 actively deployed in the exact same week of 2025.
The weekly gain reflected a five-rig drop in the U.S. to 588 rigs, while
Canadian drilling activity fell by three to 216 rigs. In the U.S., oil-directed
rigs dipped by three to 452, while gas-directed drilling edged down by one to
127. Miscellaneous rigs were down by one to 9.
By trajectory, horizontal U.S. rigs remained unchanged at 533, directional
rigs fell by 5 at 45, and vertical rigs were steady at 10.
EPA Issues Waiver to End Summer-Blend Gasoline Early
The U.S. Environmental Protection Agency (EPA), in coordination with the
Department of Energy (DOE), has announced a temporary emergency fuel waiver
beginning September 1. The measure is intended to increase the nation's
gasoline supply and help reduce prices at the pump.
The waiver runs through September 15, 2026, with targeted 20-day extensions
covering state-level controls in Texas, Arizona, and California. Emergency fuel
waivers have been in effect since May 1, 2026. EPA said it will extend the
waivers as long as fuel supply circumstances warrant.
The waiver allows the sale of E10, gasoline blended with 10% ethanol, at a
higher Reid Vapor Pressure (RVP), effectively ending the summer-blend gasoline
requirement early.
Since May 1, 2026, EPA's emergency fuel waivers have been in effect to
remove fuel restrictions across the country. The agency's action has lowered
gas prices in the states that have followed EPA's suit and waived their
requirements, according to the agency.
"Increasing the supply of gasoline means lower prices for American
families," DOE Secretary Chris Wright said.
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