Gulf CBOB Basis Strengthens sharply ahead of Scheduling
11/23 2:58 PM
Gulf CBOB Basis Strengthens sharply ahead of Scheduling CRANBURY, N.J. (DTN) -- Suggesting strong demand while regional stocks are below the historical average, basis for gasoline in Gulf Coast spot trade strengthened sharply Tuesday, with CBOB basis up 190 points on the session ahead of an afternoon scheduling deadline on the Colonial Pipeline. Progressively strengthening throughout the session, cycle 66 13.5psi Reid vapor pressure CBOB traded early at a 9cts discount to December RBOB futures on the New York Mercantile Exchange and traded this afternoon at a 7.35cts futures discount. CBOB's forward market structure also improved, with cycle 66 CBOB commanding a 225 point premium over cycle 67, and cycle 67 holding a 125-point premium to cycle 68. The latest available data from the Energy Information Administration shows PADD 3 Gulf Coast gasoline stocks at a 79.2 million bbl eight-month low as of Nov. 12, which is 2.303 million bbl or 2.8% below the three-year average. That's the widest deficit against the historical average since early August. EIA data also shows PADD 3 refiners gasoline output averaged 2.185 million bpd during the week-ended Nov. 12, a five-week low, and 139,000 bpd or 6% less than the three-year average. Brian L. Milne, 1.402.255.8020, brian.milne@dtn.com, www.dtn.com. (c) Copyright 2021 DTN, LLC. All rights reserved.