PNW Suboctane 5cts Basis Jump to Lift Boise Gasoline Rack
11/07 2:34 PM
PNW Suboctane 5cts Basis Jump to Lift Boise Gasoline Rack CRANBURY, N.J. (DTN) -- Pacific Northwest suboctane gasoline basis jumped 5cts to parity with December RBOB futures on the New York Mercantile Exchange, with the stronger basis aligning with gasoline supply along the West Coast sliding to a 15-month low at 26.192 million bbl, according to the Energy Information Administration. EIA also reported Wednesday a 2.4% decline in West Coast refining activity during the week-ended Nov. 1 to 88.1%, with a string of refinery outages late in the third quarter into the fourth quarter having rallied spot values all along the West Coast. West Coast gasoline basis values weakened nonetheless this week on reports of impending imports, while regional refineries are also seen boosting output as planned maintenance concludes. While Pacific Northwest suboctane gasoline strengthened 5cts today, basis is down from a 34cts premium to futures on Monday. Gasoline at the rack in Boise, Idaho, is set to increase with today's boost in spot value in the Pacific Northwest. The net contract average for gasoline before ethanol blending has made incremental gains since the beginning of October, but now sits at a $2.5933 gallon five-month high. The premium for conventional gasoline without ethanol at the Boise rack is just above $0.96 gallon, narrowing from Wednesday at a $1.017 gallon, the widest premium on record. Brian L. Milne, 1.402.255.8020,, (c) 2019 DTN. All rights reserved.
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