US Gulf Coast gasoline differentials spiked Aug. 24 as the region monitored approaching tropical storms Marco and Laura.
S&P Global Platts assessed USGC 87 octane CBOB at the NYMEX October RBOB futures contract plus 2.50 cents/gal after it traded at that level in the Platts Market on Close assessment process. That was up 3.87 cents on the day and highest level seen for that differential since it reached front-month futures plus 2.70 cents/gal on September 27, 2019.
"[I] feel like the storm hype is pushing things up," said a source, adding that the support "will probably stall out as we get closer and it's not as bad as anticipated. But if [the] storms get stronger, all bets are off."
Sources said many refineries along the coast were either reducing runs or shutting for the duration of the storms.
Conventional unleaded along the Gulf Coast climbed 3.25 cents to front-month futures plus 4 cents/gal, its highest mark since reaching the front month plus 4.25 cents/gal on October 10, 2019.
USGC RBOB switched to the winter specification RVP of 11.5 on Aug. 24, and was assessed at a 90 point/gal discount to 10 RVP CBOB.
Tropical Storm Marco was expected to approach the northwestern Gulf Coast the morning of Aug. 25, with Laura following closely behind in the following 48 hours, according to the US National Weather Service.
