Chicago Gasoline Slumps to 2-Month Low on Supplies, MaintenanceChristine Harvey
Chicago gasoline weakened to a two-month low relative to New York futures as stockpiles climbed to a three-year seasonal high and refineries completed work.
Conventional, 85-octane gasoline, or CBOB, in Chicago slid 2 cents to 12.5 cents a gallon below futures on the New York Mercantile Exchange at 2:36 p.m., the lowest since Aug. 16 and a third consecutive daily decline.
The differential widened after a government report showed stockpiles of gasoline in the Midwest, known as PADD 2, climbed 223,000 barrels to 49.5 million barrels in the week ended Oct. 11, the highest for the time of year since 2010, according to U.S. Energy Information Administration data.
Phillips 66’s 356,000-barrel-a-day Wood River, Illinois, refinery completed planned maintenance that began around Oct. 7, while Marathon Petroleum Corp.’s Catlettsburg, Kentucky, plant was expected to restart a unit over the weekend. The refineries have a combined capacity of about 596,000 barrels a day, according to data compiled by Bloomberg.
Ultra-low-sulfur diesel fuel in Chicago climbed 0.75 cent to 9.5 cents a gallon below New York diesel futures. The 3-2-1 crack spread for refiners in the region, a rough margin for gasoline and diesel fuel based on West Texas Intermediate in Cushing, Oklahoma, rose 31 cents to $12.47 a barrel, a second consecutive advance, according to data compiled by Bloomberg.
CBOB in the Gulf Coast fell 2.25 cents to 19.5 cents a gallon below futures, the lowest level since Sept. 10. Reformulated, 84-octane in New York Harbor slipped 0.05 cent to a premium of 1.2 cents a gallon.