Midwest CBOB Basis Strengthens to 3-Month High


   
Barani Krishnan
DTN Refined Fuels Market Reporter

   SECAUCUS, NJ (DTN) -- Midwest CBOB basis differentials strengthened Monday 
(8/3), with Chicago cash values hitting a three-month high, as traders bid up 
spot market premiums to offset a sharp drop in underlying benchmark futures.

   Chicago, Buckeye, and Wolverine pipeline CBOB differentials were heard 
traded at a 19.5cts premium to the September contract, strengthening 1.5cts on 
the day.

   DTN pricing data showed the premium fetched by Chicago CBOB matched levels 
last attained on May 4.

   On the Group 3 complex, CBOB traded at a 2.75cts discount to September NYMEX 
RBOB futures, narrowing by 12.25cts on the session.

   The spike in Midwest CBOB values came as gasoline prices tumbled 8% in 
Monday's futures trading. September NYMEX RBOB futures fell $0.2549 to settle 
at $2.9667 gallon on hopes for an easing of Middle East shipping disruptions, 
spurring cash buyers to raise differentials to secure physical barrels.




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