Midwest CBOB Basis Dips 9cts, Amid Weekly Stock Drawdown


   
Barani Krishnan
DTN Refined Fuels Market Reporter

   SECAUCUS, NJ (DTN) -- Midwest CBOB cash basis differentials mostly weakened 
Wednesday (8/5) despite a regional gasoline stock draw, as falling futures and 
a pullback from multi-month highs kept buyers cautious.

   Chicago CBOB led cash market declines, falling 9cts on the day to trade at a 
4.5cts discount to September NYMEX RBOB futures.

   On both the Buckeye Storage Complex and Wolverine Pipeline, CBOB basis 
weakened 7.5cts to settle at a 2.5cts discount to the same benchmark.

   NYMEX September RBOB futures contract fell $0.0134 to close at $2.8388 
gallon on Wednesday, extending recent market losses.

   Reduced sell-side participation from major refiners has further contributed 
to unpredictable spot price swings across Midwest pipeline hubs.

   On the inventory front, the Energy Information Administration reported 
Wednesday a 900,000 bbl draw in PADD 2 gasoline inventories to 43.4 million bbl 
in the week ended July 31. The draw coincided with a drop in regional refinery 
utilization to 98.2% from 101.4% the prior week, with crude runs slipping to 
4.192 million bpd.

   Bucking the regional trend, Group 3 CBOB strengthened 0.95cts on the session 
to shift into positive territory at a 2.0cts premium to September NYMEX RBOB 
futures.

   Localized mid-continent supply tightness continued to support Group 3 values 
against broader Midwest distribution channels.

   Despite prompt cash weakness, underlying volatility remains driven by supply 
disruptions at the Lamar terminal pipeline hub and ongoing issues at Phillips 
66's 356,000 bpd Wood River refinery, market sources said.

    




(c) Copyright 2026 DTN, LLC. All rights reserved.