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, brian.milne@dtn.com, www.dtn.com. (c) 2019 
DTN. All rights reserved.