Chicago CBOB Basis Gains on Refinery Fire, Pipeline Timing


   
   CRANBURY, N.J. (DTN) -- Basis for CBOB in the trifurcated Chicago markets 
strengthened a sharp 300 points to a 12cts discount to December RBOB futures on 
the New York Mercantile Exchange, with the three unique markets talked at 
parity.

   CBOB basis strengthened following a fire at a gasoline producing unit at PBF 
Energy's 172,800 bpd Toledo refinery in Ohio, on Tuesday. PBF has yet to 
respond to a request from DTN seeking comment on the status of the gasoline 
unit, and current operations to the Ohio refinery.

   Prompt trading is still for cycle 3 pipeline timing, although buying 
interest for cycle 1 is also lending basis support for prompt barrels. While 
noting the strengthening basis for cycle 1, buyers still want the lower bids 
for cycle 3, limiting overall trade activity.

   Gasoline stocks in PADD 2 Midwest increased 463,000 bbl to 44.263 million 
bbl as of Nov. 19, according to data from the Energy Information Administration 
released this morning, although the deficit against the three-year average 
widened for the fourth week, now at 4 million bbl or 8.3%.

    

    

   Brian L. Milne, 1.402.255.8020, brian.milne@dtn.com, www.dtn.com.




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