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.




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