Gasoline on the spot market in Chicago fell to the lowest premium to the U.S. benchmark in 13 days after paring a steeper decline in earlier trading.
Conventional, 85-octane gasoline, or CBOB, in Chicago, fell 7 cents to 26 cents a gallon above futures on the New York Mercantile Exchange at 4:11 p.m. New York time, according to data compiled by Bloomberg. The fuel had dropped to a premium of 18 cents.
“Somebody showed themselves as a buyer,” said Jim Mosby, supply manager at ADMO Energy LLC, a supply consultant in Kansas City, Missouri. “That’s how Chicago moves. There are so few players, everyone gets wind of a refinery having trouble, and they bend them over. Everyone else moves by half-cents, Chicago moves by nickels and dimes.”
Chicago gasoline reached 37 cents a gallon above futures on May 14, the highest level since Aug. 30, as refinery maintenance limited production and inventories were depleted.
Calumet Specialty Products Partners LP restarted its 45,000-barrel-a-day Superior refinery in Wisconsin after shutting it in April, refinery manager David Podratz said today by phone.
Conventional, 87-octane gasoline in Group 3, which includes regions north of Tulsa, Oklahoma, to Minnesota and North Dakota, weakened by 4.5 cents to 13 cents a gallon above futures. Prices there have receded from a record premium of 64 cents a gallon on May 16.
Ultra-low-sulfur diesel in Chicago weakened by 2.5 cents to 12.5 cents a gallon above diesel futures on the Nymex. The fuel in Group 3 weakened by 0.25 cent to 6.88 cents a gallon above futures.