The gasoline market in Chicago further descended Friday morning, with
differentials falling sharply from multi-year highs in recent days amid
Explorer Pipeline’s return to normal operations.
Chicago CBOB for delivery on Explorer Pipeline’s first November cycle
timing was heard offered at NYMEX December RBOB plus 17.5 cents/gal, with
offers heard descending throughout the morning.
The blendstock was assessed as high as futures plus 48 cents/gal
Wednesday, equal to its highest outright price in more than two years, on the
back of continued supply shortages in the region and issues on Explorer
Explorer Pipeline, which transports gasoline from the Gulf Coast to the
Chicago area, announced reduced rate operations on October 26 amid issues on
Repairs on the pipeline’s mainline segment from Houston to Glenpool,
Oklahoma, near the Tulsa hub, were performed late Wednesday, a source said.
“All of the maintenance work is complete and the 28-inch line is back to
normal,” an Explorer Pipeline spokesman said in an email Friday.
Midwest gasoline stocks fell for the sixth consecutive week during the
week of October 27, dropping to 45.544 million barrels, the latest Energy
Information Administration data showed Wednesday. This was the lowest
inventory level since the week of October 23, 2015, when it was reported at
45.175 million barrels.
Inventories sustained low levels amid multiple refinery turnarounds in
the region, as many delayed seasonal maintenance during the aftermath of
–Emmanuel Belostrino, email@example.com
–Edited by Richard Rubin, firstname.lastname@example.org