Midwest CBOB Basis Strengthens on Weekly Gasoline Stock Draw


   
Miguel E. Andujar
DTN Refined Fuels Market Reporter

   DAVENPORT, FL (DTN) -- Chicago CBOB basis strengthened Friday (10/10), with 
gains seen across Wolverine, West Shore, and Buckeye delivery points against 
November RBOB futures, as gasoline inventories in Midwest PADD 2 reported a 
draw for the second consecutive week.

   West Shore basis were assessed at a 15cts discount to November RBOB futures, 
an 8cts increase from the previous trading session, DTN Energy data showed. 
CBOB basis for Wolverine and Buckeye saw a higher drop as they were assessed at 
a 17cts discount to the front-month RBOB futures contract for November 
delivery, a 6cts increase from Wednesday (10/15).

   "This wild move today definitely has to do with the big withdrawal of 
gasoline inventories," a trader familiar with Midwest refined products market 
said.

   Midwest PADD 2 gasoline inventories continued their downtrend in the week 
ending October 10, marking a second consecutive draw as stocks decreased by 
900,000 bbl to 46.5 million bbl, according to U.S. Energy Information 
Administration data released Thursday (10/16). This was the largest weekly 
decline since August 15, when inventories fell by 1.289 million bbl.




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