US cash prices for gasoline climbed throughout the country Wednesday as suppliers looked to stock up ahead of the holiday period.
Gulf Coast CBOB, the market's most commonly traded grade, was assessed at NYMEX January RBOB minus 4.50 cents/gal, a 2.25 cents/gal climb from Tuesday and its highest level since December 5.
"Some people, like marketers, need their juice," one market source said. "They need to feed the machine."
The American Automobile Association expects a record 103 million travelers during the Christmas and New Year's holidays, including 93.6 million that will travel by car or truck.
That sentiment was echoed Wednesday in Energy Information Administration data which showed gasoline product supplied -- often used as a proxy for consumer demand -- rose 395,000 b/d to 9.27 million b/d the week ended December 16, a five-week high.
In the Midwest, EIA data showing increased production and stocks on top of existing oversupply was offset by continued buying and ongoing refinery problems.
Chicago CBOB moved swiftly upward, rising 6.25 cents to NYMEX January RBOB plus 9 cents/gal on a trade heard at that level. The blendstock had not been assessed higher since August 26, at 13 cents/gal over futures.
Market sources said refiners have been bidding over the last week, driving up prices. In addition, BP shut a unit Tuesday at its 413,500 b/d Whiting, Indiana, refinery, which heavily supplies the Chicago market.
Market sources said the unit was a reformer, and a source familiar with refinery operations said that the outage was not expected to be lengthy, with a restart anticipated in a matter of days.
Group 3 suboctane followed Chicago's example, gaining 2.5 cents to NYMEX January RBOB minus 3.25 cents/gal, its highest assessment since October 10.
A US refined products source attributed the strength in the region to refiners and a marketer buying, as well as "refinery snags from the Gulf Coast to Chicago, and pre-Christmas demand."
On the Atlantic Coast, benchmark RBOB rose 5 points Wednesday to NYMEX January RBOB futures minus 0.45 cent/gal, supported by a draw on stocks and lower imports.
Area gasoline stocks fell 1.2 million barrels to 61.985 million barrels for the week ended December 16, EIA data showed. That report put regional stocks 8.9% above their level from last year and 11.4% above the five-year average for this time of year.
Gasoline imports into the region fell for the second week to 427,000 b/d, 24% below the daily average for all of 2015.
