Group 3 CBOB Basis Up 10cts as PADD 2 Gasoline Draws


   
Barani Krishnan
DTN Refined Fuels Market Reporter

   SECAUCUS, NJ (DTN) -- Midwest CBOB cash basis differentials diverged 
Wednesday (8/12), as persistent PADD 2 gasoline inventory draws supported Group 
3 bids while Chicago values continued to soften.

   Chicago CBOB basis was unchanged against the same benchmark, remaining at 
the prior session's Merc level.

   In key Midwest pipelines, CBOB at both the Buckeye Complex and Wolverine 
were heard trading at a premium of 5cts against the NYMEX benchmark. The 
differential for Buckeye strengthened by 7cts while the basis for Wolverine 
rose by 3cts.

   The premium was even bigger in Group 3 CBOB, where differentials were heard 
strengthening 6.5cts on the day to trade at 10cts above September RBOB futures.

   A Midwest trader noted erratic swings throughout the session in the V-grade 
gasoline product that makes up Group 3 CBOB.

   "V grade was a wild, wild ride today," the trader told DTN. "The basis 
started off at 5.25cts, then went to 10cts, and after that 9cts, 8.5cts and 
something in the 4-handles, before trading in the window at 10cts or above."

   The physical cash market divergence unfolded alongside fresh inventory data 
from the Energy Information Administration (EIA) showing Midwest motor gasoline 
stocks drew by 400,000 bbl during the week ended Aug. 7 to stand at 43 million 
bbl.

   The drawdown leaves PADD 2 gasoline stockpiles 4 million bbl below year-ago 
levels, even as regional refinery utilization edged up 0.4 percentage points to 
98.6% with refiner crude runs rising to 4.210 million bpd.

   In futures trade, NYMEX RBOB for September gained $0.0171, or 0.5%, to 
finish at $3.1537 gallon, while September WTI crude rose $0.07, or 0.1%, to 
settle at $83.27 bbl.

   Despite daily futures fluctuation, physical cash trading across PADD 2 
channels remains closely tethered to operational bottlenecks at major refining 
and transit hubs.

   Secondary unit disruptions at Phillips 66's 356,000 bpd Wood River refinery 
in Roxana, Illinois, continue to trim prompt finished gasoline output, forcing 
mid-continent distributors into spot channels for replacement barrels.

   Logistics friction at the Lamar terminal pipeline hub near the 
Colorado-Kansas border also continues to constrain northbound product velocity 
into mid-continent distribution networks.

   As a critical crossover node connecting Gulf Coast and Rocky Mountain supply 
lines with PADD 2, throughput limits at Lamar have kept regional basis 
differentials volatile as physical traders defend declining stock levels.




(c) Copyright 2026 DTN, LLC. All rights reserved.