Houston CBOB Basis Softens with move to New Pipeline Cycle
CRANBURY, N.J. (DTN) -- Basis for CBOB at the Houston origin of the Colonial
Pipeline in the Gulf Coast spot market softened Tuesday with the move to cycle
7 and to March RBOB futures on the New York Mercantile Exchange, trading at a
6.15cts discount to the screen.
Basis weakened 40 points Tuesday, in line with Monday's 36-point prompt
spread contango settlement in the futures market, with the physical market in a
50-point backwardation through month's end.
Gasoline inventory in PADD 3 increased a sharp 4.447 million bbl to an
85.307 million bbl five-week high during the second week of January, Energy
Information Administration data shows, as refinery output increased 184,000 bpd
or 9.3% to 2.17 million bpd following end-year refinery disruptions. The build
narrowed a deficit against the three-year average to 2.3 million bbl.
Gasoline stocks in PADD 1C Lower Atlantic states, which depend on PADD 3
refinery production, was drawn down 457,000 bbl to 24.404 million bbl, widening
a deficit against the three-year average by 958,000 bbl to 3.552 million bbl
during the week-ended Jan. 13.
Brian L. Milne, 1.402.255.8020, email@example.com, www.dtn.com.
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