Sign up
Log in
US Cash Products-US Midwest differentials climb as refinery outages pile on
Share
Listen to the news
US Cash Products-US Midwest differentials climb as refinery outages pile on

- Cash differentials for gasoline and diesel rose in the Chicago spot market on Wednesday with traders citing issues at a refinery supplying to the region.

Chicago ultra-low sulfur diesel ULSD-DIFF-MC rose by 2.5 cents to 3 cents a gallon above ULSD futures HOc1 on the New York Mercantile Exchange, traders said.

Traders said Marathon Petroleum Corp's 300,000 barrel-per-day Catlettsburg refinery in Kentucky was facing outages, forcing the company to pick up supplies on spot markets. Marathon did not immediately respond to requests for comment.

BP Plc's 435,000 bpd Whiting refinery in Indiana is expected to begin maintenance as soon as next week, industry monitor IIR Energy said on Sept. 12.

Chicago CBOB gasoline CBOB-DIFF-MC was unchanged after Wednesday's trading window closed, but it was cited a cent higher at 6 cents above the gasoline futures benchmark RBc1 later in the day, they said.

In the neighboring Group​ 3 spot market, V-grade gasoline RUV-DIFF-G3 rose 4.5 cents to 13.5 cents above the benchmark.

Group 3 diesel ULSD-DIFF-G3 fell three quarters of a cent, trading 3.25 cents higher than the benchmark.

Trading for Colonial Pipeline's 54th annual cycle of gasoline deliveries to New York Harbor ended after Wednesday's business. The 55th cycle will begin on Thursday.

For distillate fuels, such as diesel, the 54th cycle began trading on Wednesday.

U.S. Gulf Coast M3 conventional gasoline RU-DIFF-USG was unchanged ahead of the cycle change at 4 cents below futures, market participants said.

A3 CBOB gasoline CBOB-DIFF-USG gained three quarters of a cent to 7.5 cents below futures, they said.

Gulf Coast 62-grade ULSD ULSD-DIFF-USG gained 0.05 cent to 7 cents below futures.

In New York Harbor, M3 conventional gasoline RU-DIFF-NYH was assessed at 8.5 cents above futures based on a wide bid and ask spread, traders said. Harbor diesel ULSD-DIFF-NYH rose half a cent to 2.25 cents below futures.

U.S. gasoline stocks USOILG=ECI rose by 69,000 barrels in the week ended Sept. 13 to 221.62 million barrels, the U.S. Energy Information Administration said on Wednesday. That compared with analysts' expectations in a Reuters poll for a 240,000 barrel rise.​

Distillate stockpiles USOILD=ECI, which include diesel and heating oil, rose by 125,000 barrels last week to 125.15 million barrels, versus expectations for a 551,000 barrel increase, EIA data showed.

Refinery crude runs USOICR=ECI fell by 282,000 barrels last week, EIA said. Refinery utilization rates USOIRU=ECI fell by 0.7 percentage points.

Oil futures settled lower on Wednesday as a half percentage point interest rate cut from the U.S. Federal Reserve worried analysts about the health of the U.S. economy. However, fuel futures eked out marginal gains. O/R

RBOB gasoline futures rose 0.88 cents to $2.0107 a gallon, while ULSD futures HOc1 rose 1.08 cents to $2.1475 on Wednesday.

Renewable fuel (D6) credits RIN-D6-US for 2024 traded at 57.75 cents and 58 cents each on Wednesday, compared to between 57 cents and 56.75 cents each, traders said.

Biomass-based (D4) credits RIN-D4-US traded at 58 cents each, up from 57 cents each previously, traders said.

Latest day

Timing

NYMEX Contract

Bid

Offer

Change

U.S. GULF COAST <0#P-USG, PPIM> * Scheduling

A3 CBOB gasoline CBOB-DIFF-USG *

Cycle 54

October RBOB

-7.75

-7.25

0.75

M3 conventional gasoline RU-DIFF-USG *

Cycle 54

October RBOB

-4.25

-3.75

0.00

62-grade ULSD ULSD-DIFF-USG

Cycle 54

October HO

-7.25

-6.75

0.05

54-grade jet fuel JET-DIFF-USG

Cycle 54

October HO

-17.25

-17.00

1.00

Heating oil HO-DIFF-USG

Cycle 54

October HO

-20.25

-18.75

0.75

NEW YORK HARBOR <0#P-NYH, PPIL>

Bid

Offer

Change

M3 conventional gasoline RU-DIFF-NYH

Prompt

October RBOB

6.00

11.00

-4.00

F4 RBOB RBOB-DIFF-NYH

Prompt

October RBOB

-1.00

0.00

0.00

ULSD ULSD-DIFF-NYH

Prompt

October HO

-2.50

-2.00

0.50

Heating oil HO-DIFF-NYH

Prompt

October HO

-50.50

-50.00

0.00

Jet fuel JET-DIFF-NYH

Prompt

October HO

-10.50

-10.00

0.5​

MIDWEST 0#P-G3, 0#P-MC, IHPROD/MIDCO

Bid

Offer

Change

Chicago CBOB gasoline CBOB-DIFF-MC

Cycle 2

October RBOB

4.75

5.25

0.00

Chicago ULSD ULSD-DIFF-MC

Cycle 2

October HO

2.25

3.75

2.50

Group Three gasoline RUV-DIFF-G3

October RBOB

13.25

13.75

4.50

Group Three ULSD ULSD-DIFF-G3

October HO

3.00

3.50

-0.75


(Reporting by Shariq Khan in New York; Editing by David Gregorio)

((Shariq.Khan@thomsonreuters.com; Twitter/X: @shariqrtrs; Office: (646) 261-7893;))

Disclaimer:This article represents the opinion of the author only. It does not represent the opinion of Webull, nor should it be viewed as an indication that Webull either agrees with or confirms the truthfulness or accuracy of the information. It should not be considered as investment advice from Webull or anyone else, nor should it be used as the basis of any investment decision.
What's Trending
No content on the Webull website shall be considered a recommendation or solicitation for the purchase or sale of securities, options or other investment products. All information and data on the website is for reference only and no historical data shall be considered as the basis for judging future trends.