US Cash Products-Group Three gasoline falls sharply, demand weak

Thu Dec 27, 2012 2:12pm EST

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* Thin trade contributes to sharp Group Three gasoline swing
    * Gulf Coast gasoline slides in thin trade
    * Harbor distillates move lower

    HOUSTON, Dec 27 (Reuters) - Midwest Group Three gasoline differentials
plunged by 6.00 cents per gallon in a thinly traded market on Thursday on weak
demand, tracing declines in Gulf Coast gasoline, traders said.
    Group Three gasoline fell to 36.00/34.00 cents under the January RBOB
gasoline futures contract on the New York Mercantile Exchange. Few trades were
executed, leading to the sharp price swing, traders said. 
    Chicago cycle 1 gasoline held steady at 27.00/25.00 cents under February
futures even after Exxon Mobil Corp reported the restart of an
unspecified unit at its 238,600-barrels-per-day Joliet, Illinois refinery.
    On the Gulf Coast, gasoline differentials extended declines - also in thin
trade between the Christmas and New Year's Day holidays - as year-end demand
waned, traders said.
    A4 CBOB slipped 2.25 cents per gallon to 22.00 cents under February RBOB
futures on the NYMEX, while conventional M4 gasoline fell by 2.00 cents per
gallon to 20.00 cents under, traders said.
    Gulf jet fuel differentials were talked about 1.75 cents per gallon higher
on a new five-day lifting cycle, traders said.
    But Gulf ultra-low-sulfur diesel differentials retreated by 2.25 cents per
gallon to 6.50 cents under January NYMEX RBOB futures as its last five-day
lifting cycle to trade against the January contract scheduled to move on the
Colonial Pipeline.
    In New York Harbor, distillates traded slightly lower with ULSD down about a
penny per gallon to 5.00/6.00 cents over January NYMEX heating oil futures. Jet
fuel fell by half a cent per gallon to 8.00 cents over, traders said.
    For more refinery news, please go to 
                                                   Latest day      
                             Timing      NYMEX     Bid     Offer   Change
 U.S. GULF COAST * Scheduling                          
 M4 conventional gasoline    Cycle 1      RBOB     -20.25  -19.75  -2.00
 61-grade ULSD *             Cycle 72     HO       -6.75   -6.25   -2.25
 54-grade jet fuel           Cycle 1      HO       -1.00    0.00    1.75 
 Heating oil                 Cycle 1      HO       -6.50   -6.00    0.00
 M4 conventional gasoline    Prompt      RBOB     4.00     5.00    0.00
                             Any-Month   RBOB     2.50     3.00    0.00
 F5 RBOB                     Prompt      RBOB     2.00     3.00    0.00
                             Any-Month   RBOB     1.50     1.75    0.00
 ULSD                        Prompt      HO       5.00     6.00    -1.00
                             Any-Month   HO       5.00     6.00    -0.50
 Heating oil                 Prompt      HO       -0.25    0.25    0.00
                             Any-Month   HO       -0.25    0.25    0.00
 Jet fuel                    Prompt      HO       7.50     8.50    -0.50
                             Any-Month   HO       7.50     8.50    -0.50
 Chicago CBOB gasoline       Cycle 3     RBOB     -27.00   -25.00   0.00
 Chicago ULSD                Cycle 3     HO       -8.00    -6.00   -2.00
 Group Three gasoline                    RBOB     -36.00   -34.00  -6.00
 Group Three ULSD                        HO       -4.75    -4.25   -2.00