Gulf CBOB Basis Strengthens as Region's Oversupply Erased
CRANBURY, N.J. (DTN) -- Basis for gasoline grades in the Gulf Coast spot
market improved Friday afternoon, with CBOB strengthening 90 points to a 4cts
discount to January RBOB futures on the New York Mercantile Exchange after
stock levels in PADD 3 fell below year ago mid-November.
At 80.094 million bbl as of Nov. 13, PADD 3 gasoline inventory moved 562,000
bbl below year ago while a modest 0.4% above the five-year average, data from
the Energy Information Administration shows. Inventory levels in the region
began the fourth quarter 6% above both year-ago and the five-year average.
Refiners throttled back yields to offset lost demand amid the coronavirus
pandemic, with Gulf Coast refiners averaging a 73.7% run rate during the first
half of the fourth quarter compared with an 88.4% run rate during the
comparable year-ago period.
Brian L. Milne, 1.402.255.8020, email@example.com, www.dtn.com.
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