Midwest CBOB Basis Hits 2-Month High


   
Barani Krishnan
DTN Refined Fuels Market Reporter

   SECAUCUS, NJ (DTN) -- Midwest CBOB cash basis surged Monday (7/27), pushing 
spot premiums to more than two-month highs and counteracting a sharp decline in 
underlying front-month NYMEX RBOB futures.

   Chicago CBOB was heard talked at an 8.25cts premium to the September NYMEX 
RBOB contract, strengthening 25.25cts on the day.

   DTN pricing data showed it was the highest premium against NYMEX RBOB since 
May 13, when it last traded at an 8.5cts premium.

   Front-month NYMEX RBOB futures fell 6.86cts Monday to settle at $3.3273 
gallon as crude and refined products tumbled across the board following a pause 
in U.S.-Iran hostilities.

   Pipelines in nearby distribution channels tracked the physical gain. Buckeye 
and Wolverine pipeline CBOB differentials widened 23.75cts on the day to an 
8.25cts premium over NYMEX RBOB futures.

   The cash market strength reflects tight underlying spot availability across 
the Midwest, even as high regional refinery processing rates continue.

   According to the U.S. Energy Information Administration, PADD 2 refinery 
utilization reached 100.3% in the week ended July 17.




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