The outright price for 87-octane unleaded gasoline in Chicago fell under 80 cents/gal for the first time in more than 12 years Wednesday, pressured by strong refinery production and stocks at an eight-year high.
The regional benchmark was assessed 5 cents/gal lower day-on-day at 78.68 cents/gal, its lowest value since December 2003.
Midwest gasoline stocks climbed 433,000 barrels to 58.87 million barrels in the week ended January 22, highest since March 2008, data from the US Energy Information Administration showed Wednesday.
Those inventories have been pressuring Midwest gasoline prices since the start of the new year, especially in Chicago.
Chicago CBOB -- a blendstock used to make 87 unleaded -- was assessed at NYMEX March RBOB minus 28 cents/gal, or 77.68 cents/gal, its lowest outright price since Platts started the assessment in September 2009. Chicago CBOB has now set seven new record lows since January 11.
CBOB inventories jumped 237,000 barrels to 35.52 million barrels, a new record high, while stocks of RBOB fell 59,000 barrels to 6.87 million barrels, EIA data showed.
Despite falling prices and rising stocks, refinery utilization in the Midwest remained steady, falling just 1 percentage point to 97.2%, EIA data showed.
Refiners in the Midwest, especially those able to run heavy Canadian crudes, are still seeing profitable margins for gasoline despite weaker prices. The crack for a barrel of 87 unleaded gasoline against Western Canadian Select was $13.68/b Wednesday, down 3 cents/gal from Tuesday.
