Gasoline strengthened in the Midcontinent to trade at a premium to futures for the first time in five days.
Conventional, 87-octane gasoline in the Midcontinent region strengthened to a 1.13-cent premium to August futures on the New York Mercantile Exchange at 2:33 p.m., after trading at a 13.75-cent discount to July futures on June 29, the day that contract expired. July futures were trading at a 9.54-cent premium to August futures that day, making today’s spread a 5.34-cent improvement.
Last week, Phillips 66 “placed quite a few barrels in the Midcontinent and took it down to that level,” said Steve Mosby, vice president at ADO Energy LLC, a supply consultant in Kansas City, Kansas. “They were just long a lot of gasoline. Today could be a function of getting that value back.”
Conventional gasoline in Chicago weakened 1 cent to a discount of 5.5 cents a gallon versus futures. Gulf Coast gasoline strengthened 0.87 cent to a discount of 10.88 cents a gallon against New York futures.