CBOB Basis in Chicago Spot Markets Firm after Stock Draw


   
   CRANBURY, N.J. (DTN) -- Basis for CBOB in Chicago spot markets strengthened 
in early discussion Thursday following a drawdown from PADD 2 gasoline 
inventory.

   PADD 2 gasoline inventory was drawn down 1.315 million bbl or 2.5% to a 
51.316 million bbl 19-week low, according to Energy Information Administration 
data released Wednesday. The district's stock level is 5.719 million bbl above 
a year ago, when protracted refinery outages led to weekly drawdowns from 
mid-March to mid-May, while 3.65 million bbl above the three-year average.

   Basis for CBOB on the Badger and West Shore pipeline network, which collects 
and delivers fuel in northern Illinois, with the pipelines traversing into 
Wisconsin, strengthened 100 points in discussion to a 23.5cts discount to June 
RBOB futures on the New York Mercantile Exchange. CBOB basis at the Buckeye 
Storage Complex in northern Indiana, and on the Wolverine Pipeline which 
carries refined fuel from the complex into Michigan, were both assessed at 
19cts discount to June RBOB futures, strengthening 250 points from end-day 
Wednesday.

    

    

   Brian L. Milne, 1.732.768.0260, brian.milne@dtn.com, www.dtn.com.

    




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