Chicago gasoline weakened versus futures by the most in almost two weeks on speculation that yesterday’s gain was overdone.
Conventional, 85-octane gasoline, or CBOB, in Chicago slid 7 cents to 11.5 cents a gallon under New York Mercantile Exchange gasoline futures at 4:13 p.m., the biggest drop since July 15, according to data compiled by Bloomberg. The discount narrowed 6.25 cents yesterday after Exxon Mobil Corp. (XOM) reduced rates at its Joliet, Illinois, refinery.
“Yesterday’s strength is part of the story for today’s weakness,” Ken Malloy, a broker with Danaher Oil Co., said by phone from Fairfield, Iowa. “With the Exxon news in the market” and other refiners buying too, the markets traded higher yesterday, he said in an e-mail.
Exxon’s Joliet refinery is the fifth-largest in the U.S. Midwest with a capacity of 238,000 barrels a day, according to data compiled by Bloomberg. It primarily produces gasoline and diesel for the Midwest, the company’s website shows.
The 3-2-1 crack spread in Chicago, a rough measure of refining margins for gasoline and diesel based on West Texas Intermediate oil in Cushing, Oklahoma, dropped 64 cents to $18.78 a barrel.
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