Houston CBOB Basis Softens with move to New Pipeline Cycle
1/24 3:19 PM
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, brian.milne@dtn.com, www.dtn.com. (c) Copyright 2023 DTN, LLC. All rights reserved.
 
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