Midwest CBOB Basis Up as Stocks Dip, Holiday Travel Nears


   
Barani Krishnan
DTN Refined Fuels Market Reporter

   SECAUCUS, NJ (DTN) -- Midwest CBOB differentials to NYMEX RBOB for June rose 
Wednesday (5/20) after federal data showed regional stockpiles of gasoline at 
new six-month lows.

   Demand anticipated ahead of road trips for the May 25 Memorial Day holiday 
also appeared to boost values for PADD 2 gasoline.

   The basis for CBOB in Chicago was at a discount of 10cts gallon to the NYMEX 
after rising 23cts from Tuesday's (5/19) discount of 33cts, which marked the 
weakest level for the product in six weeks.

   On the Buckeye Storage Complex, CBOB was at a discount of 12cts gallon, 
improving from the prior session's 20cts. On the Wolverine Pipeline, the 
discount was 10cts compared with Tuesday's 20cts.

   PADD gasoline balances decreased by 600,000 bbl to 45 million bbl during the 
week ended May 15, falling for a fifth straight week, the U.S. Energy 
Information Administration reported Wednesday.  The current inventory level is 
below the 47.8 million bbl recorded the same week of last year and is the 
lowest since late November 2025.

   Midwest refined product differentials look poised to climb this week as 
blenders and distributors aggressively secure fuel volumes ahead of a 
record-setting Memorial Day holiday travel surge, regional traders said. The 
seasonal demand pull coincides with severe structural tightness across PADD 2, 
where a heavy refinery problem stack heavily restricts regional production 
capacity and flexibility.

   The extensive processing disruptions have triggered extreme spot market 
price gyrations over the past two weeks, forcing regional suppliers to hoard 
physical barrels on short-squeeze fears before abruptly releasing them into the 
market.




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