Chicago Gasoline Falls to Lowest in 13 Days After Early PlummetDan Murtaugh
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.