Outright prices for gasoline in the Chicago, Illinois, trading hub fell to an all-time low Monday, as high stocks and restarted refinery units have created a well-supplied market.
CBOB was assessed at 94.58 cents/gal, its lowest outright value since Platts started the assessment on September 9, 2009. The cash price for CBOB was assessed at front-month NYMEX RBOB minus 30 cents/gal, down from Friday's assessment at minus 12.25 cents/gal.
"I never thought I would ever see the day, gas lower than $1.00," one broker said.
The US Midwest had been hit especially hard by planned and unplanned refinery turnarounds in September and October, with utilization rates dropping to 75.5% the week ended October 16, the lowest figure since the Energy Information Administration began tracking the data in June 2010. Rates have since rebounded, climbing to 87.7% the week ended November 6, EIA data showed.
Gasoline stocks also climbed that week, reaching 46.9 million barrels, the highest since the week ended October 16. The uptick was lead by RBOB inventories, which climbed to 6.45 million barrels the week ended November 6, the highest sum since the last week in July.
RBOB was assessed at 97.58 cents/gal, its lowest level since March 11, 2009. Its differential was assessed at NYMEX minus 27 cents/gal, also a 17.75 cents/gal fall from Friday.
Rack prices for unleaded gasoline in the Chicago area fell to $1.1987/gal Monday, their lowest level since February 24, 2009, according to Telvent/DTN rack pricing.
The US Gulf Coast, which is a major swing supply source for the Midwest, saw wholesale gasoline values hit record lows last week, with conventional gasoline with 13.5 RVP (M4) assessed at a six-year low at $1.1408/gal last Friday.
The Gulf Coast market saw a slight recovery Monday, however, on the back of news that Valero shut down a Fluid Catalytic Cracking Unit at its 335,000 b/d Port Arthur, Texas, refinery.
As of Monday, Gulf Coast CBOB, assessed at $1.1108/gal, traded at a 16.5 cent premium to Chicago CBOB.
