The US Gulf Coast cash market extended its bull run Thursday, after five straight days of boosts in differentials for conventional gasoline and CBOB. Midwest gasoline differentials also rose.
Gulf Coast conventional gasoline at 9 RVP (M2) was heard traded at NYMEX September RBOB minus 11 cents/gal. It was assessed Wednesday at the futures contract minus 13 cents/gal.
"The Gulf is on fire right now," a US products broker said.
CBOB at 9 RVP (A2) was heard traded at NYMEX September RBOB minus 14.25 cents/gal. It was assessed Wednesday at the futures contract minus 16.75 cents/gal
"The simplest explanation is that no one was out offering A2 or M2 for most of the morning until we got to minus 11 on the M2," a second US products broker said. "Then, there was the issue last week at Coffeyville."
CVR last week shut its 115,000 b/d refinery in Coffeyville, Kansas, with the plant expected to resume operations in late August.
"Overall, this feels like a seller's market," the second US products broker said.
In the 21 trading days from July 9 through Thursday, the conventional gasoline differential in the Gulf Coast rose 8.75 cents -- a rate of about 42 points/day. The differential dropped only three days in that period.
The differentials for both conventional gasoline and CBOB rose for five consecutive days ending Thursday.
In the Midwest, Chicago CBOB flipped to a premium to the NYMEX RBOB contract for the first time in seven weeks.
CBOB for delivery through August 14 was heard traded at NYMEX September RBOB plus 3 cents. It was assessed Wednesday at the futures contract minus 3.50 cents/gal. "It's really ripping today," a gasoline trader said.
Suboctane in the Tulsa, Oklahoma-based Group 3 cash market was trading at NYMEX September RBOB minus 2 cents/gal, up 3.75 cents from Wednesday's assessment.
