West Coast Cash Gasoline Basis Weaker, Futures Lift Prices
5/16 4:46 PM
West Coast Cash Gasoline Basis Weaker, Futures Lift Prices OAKHURST, N.J. (DTN) --- Cash gasoline basis in California and Pacific Northwest trade markets weakened on the session with prices higher across the region thanks to a 2.1% jump by New York Mercantile Exchange RBOB futures. RBOB futures led oil futures higher as Energy Information Administration data showed a better-than-expected 3.8 million bbl drop in gasoline supplies during the week-ended May 11 despite a roughly 5% hike in output and reduced demand and imports. NYMEX June RBOB futures soared 4.51cts to settle at $2.2499 gallon while June ULSD futures settled up 2.02cts at $2.2692 gallon. Nearby delivery month West Texas Intermediate crude traded 18cts higher at $71.49 bbl and the July Brent contract on the Intercontinental Exchange rose 85cts to $79.28 bbl. EIA reported PADD V gasoline supply declined 161,000 bbl last week to 29.692 million bbl, 624,000 bbl higher than a year earlier while overall production eased 2,000 bbl on the week. Los Angeles May CARBOB traded as low as futures parity before coming back up to trade 2.0cts over the MERC. Late Tuesday the fuel was offered at 7.0cts futures premium. The gain on the print lifted spot price just over a penny to $2.2699 gallon. Trade sources pegged bids for San Francisco Bay prompt CARBOB at a 3.0cts premium to L.A. assessments due to planned turnaround at Shell's Martinez refinery. In the Pacific Northwest, prompt suboctane remained under selling pressure. Sources said the fuel traded 9.0cts over the print versus offers a day ago at 13.0cts premiums. Spot price rose 1.51cts to $2.3399 gallon. May ULSD in the Pacific Northwest was indexed at a 15.0cts futures premium, down from 18.0cts a day earlier. The gain on the MERC limited the decline to 1.48cts at $2.4142 gallon. In the Bay area, May CARB ULSD was assessed at a 4.5cts futures premium, up 2.02cts to $2.3142 gallon. Prompt CARB ULSD in the basin traded 6.25cts over the print, up 1.77cts at $2.3317 gallon. PADD V distillate supply rose for the first time in four weeks, up 281,000 bbl to 12.723 million bbl, nearly 400,000 bbl above a year ago. Dawn Gallagher, 1.732.531.4451, dawn.gallagher@dtn.com, www.dtn.com. (c) 2018 DTN. All rights reserved.