Gulf Gasoline Basis Weakens as Regional Refining Recovers
9/27 3:47 PM
Gulf Gasoline Basis Weakens as Regional Refining Recovers CRANBURY, N.J. (DTN) -- Basis for the various grades of gasoline traded in the Gulf Coast spot market weakened 50 points or more, with the premium grades down the most, as supply constraints from the shutdown of nine refineries in Louisiana in late August are worked out and PADD 3 gasoline inventory increased. Seven of the nine oil refineries knocked offline by Hurricane Ida had returned to normal operations last week, and the status of Shell's 230,611 bpd Norco refinery was unclear, with the refinery last reported flaring. Phillips 66's 255,600 bpd Alliance refinery in Belle Chasse suffered damage, according to multiple reports. Gasoline stocks in PADD 3 were last tallied at 81.5 million bbl as of Sept. 17, down 504,000 bbl against the three-year average, according to the Energy Information Administration, with new data set for release on Wednesday. CBOB with 11.5psi Reid vapor pressure traded several times at a 3.5cts discount to November futures on the New York Mercantile Exchange for cycle 55 on the Colonial Pipeline, with basis weakening 75 points on the trade. Cycle 55 CBOB with 13.5psi RVP traded at a 4.25cts discount to the November contract. Cycle 55 12.5psi RVP RBOB traded at a 25-point discount to 11.5psi RVP CBOB. Regrades between premium RBOB and RBOB and premium CBOB and CBOB both narrowed to 15.5cts, weakening basis against November futures by 150 and 200 points, respectively. Cycle 55 conventional regular traded at a 25-point premium to November futures ahead of an afternoon pipeline scheduling deadline, with basis weakening 275 points. Conventional premium holds a 10.5cts premium to regular. Brian L. Milne, 1.402.255.8020, brian.milne@dtn.com, www.dtn.com. (c) Copyright 2021 DTN, LLC. All rights reserved.