USGC CBOB Basis Hit 5-Year Low on Stocks Build


   
Maria Eugenia Garcia
DTN Energy Editor

   HOUSTON, TX (DTN)-- Basis for January CBOB regular gasoline at the Houston 
origination point for the Colonial Pipeline in the Gulf Coast spot market hit a 
5-year low on Thursday, driven by plentiful supplies and weak demand.

   CBOB gasoline regular basis in the USGC weakened by 500 points to a 13.75cts 
discount to January RBOB futures on the New York Mercantile Exchange, the 
weakest level since December 2020, and down by 13% compared with the same 
period of last year, according to DTN data.

   The weakening basis follows Energy Information Administration data showing 
USGC (PADD 3) motor gasoline blending component stocks rising for the second 
consecutive week to 80.1 million bbl in the week ended December. This was 
higher by 1.1 million bbl than the volume reported the prior week and up by 4.3 
million bbl compared to last year levels.

   The combination of robust inventory builds, rising imports, and regional 
price discounts underscores fundamentally weak demand in the main U.S. fuel hub.

   Due to abundant supply and weak demand fundamentals, the USGC also continued 
reporting the lowest U.S. gasoline retail price in the week ended December 8, 
as it was at $2.493 gallon, 44.7cts below the $2.9400 gallon national average 
price, EIA data showed.




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