West Coast Cash Gasoline Basis Mixed, Prices DN with MERC
8/14 5:13 PM
West Coast Cash Gasoline Basis Mixed, Prices DN with MERC OAKHURST, N.J. (DTN) --- West Coast spot gasoline prices slumped Wednesday afternoon as mixed basis met with a better than 6cts slide by New York Mercantile Exchange RBOB futures. Sources reported deals in both the California and Pacific Northwest markets, with Los Angeles recording the bulk of the activity. In paper trade, oil futures mostly erased the prior session run-up on bearish Energy Information Administration crude supply data while also pressured by falling equities on recession concerns. EIA reported a second surprise build in domestic crude supplies in as many weeks, up 1.6 million bbl in the week ended Aug. 9 while gasoline inventories fell 1.4 million bbl and distillates supplies dropped 1.9 million bbl. NYMEX September West Texas Intermediate crude futures dropped $1.87 to $55.23 bbl settlement and the October Intercontinental Exchange Brent contract shed $1.82 to settle at $59.48 bbl. September NYMEX RBOB futures slid 6.06cts to $1.6758 gallon settlement and September ULSD futures settled down 3.36cts at $1.8437 gallon. In physical trade, sources said cash gasoline basis for both prompt and second month pipeline delivery in the basin firmed early before ending the session flat. August CARBOB in L.A. traded at 10cts, 10.5cts, 11cts, 12cts and 10cts premiums, sliding 5.56cts to $1.7758 gallon. September CARBOB traded at 23cts, 21cts, and 20.5cts premiums to October RBOB futures. In San Francisco, prompt CARBOB traded 10cts over the MERC, dropping with the print to $1.7758 gallon. Pacific Northwest August suboctane traded at a 6.5cts premium to September RBOB futures, falling 7.56cts to $1.7408 gallon. EIA data for the week ended Aug. 9 showed PADD V fell 1.557 million bbl to 30.172 million bbl while distillate supply was drawn down 931,000 bbl to 12.316 million bbl. On the diesel side of discussion, prompt ULSD in the Pacific Northwest was bid 7cts over the MERC with offers at 9cts premiums. Spot price fell 3.86cts to $1.9237 gallon. Bay area prompt CARB ULSD tracked futures down 3.36cts to $1.8637 gallon, indexed 2cts over the print. August CARB ULSD in the basin traded 3cts over the print, down 2.36cts to $1.8737 gallon. Prompt ULSD for export out-of-state was also talked at a 3cts futures premium. Dawn Gallagher, 1.732.531.4451, dawn.gallagher@dtn.com, www.dtn.com. (c) 2019 DTN. All rights reserved.
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