US Gulf Coast premium gasoline differentials spiked Monday as Colonial Pipeline's 6th shipping cycle deadline loomed, leaving traders scrambling to cover short positions.
During the Platts Market on Close assessment process, Lukoil bought 25,000 barrels of 13.5 RVP premium from Valero at NYMEX February RBOB plus 21 cents/gal, after earlier buying from Noble at NYMEX plus 15.5 cents/gal.
Glencore was seen during the MOC process showing an initial bid at NYMEX plus 10.25 cents/gal, and ultimately bought from Chevron at NYMEX plus 20.75 cents/gal.
Platts assessed the fuel at NYMEX plus 21 cents/gal, up over 9.75 cents from Friday.
While premium gasoline registered hefty spike, conventional differentials fell over the same period, sending the spread between the two grades to 44.25 cents, highest since September 13, when it was measured at 45 cents.
Platts assessed the 13.5 RVP conventional Monday at NYMEX minus 23.25 cents/gal, down 4 cents as traders raced to shed extra length before the deadline.
