US Cash Products-USG gasoline extends rally on storm
NEW YORK, Aug 29 (Reuters) - Gulf Coast cash gasoline rose on Friday, extending this week's rally, as the energy sector braced for Tropical Storm Gustav which may threaten the oil and gas infrastructure along the nation's refinery row next week.
Gulf gasoline's advance has gained traction in recent sessions, putting the grade up about 15 cents since Monday.
"Predictions are scary for the Gulf crude/gas production and for Gulf Coast refining - considering the general storm-track predicted and the potential strength of this storm," one market watcher said, regarding Gustav's impact.
Other cash U.S. oil products hubs east of the Rockies which are further north from the Gulf saw quiet dealings on Friday. Differentials in the New York Harbor recouped some of Thursday's losses.
Going into the three-day Labor Day weekend, traders were also watching newly formed Tropical Storm Hanna, in the Atlantic which could become a hurricane next week. [ID:nN29427082]
Motiva Enterprises reduced staffing to skeleton levels at its 220,000 barrel per day Norco, Louisiana refinery ahead of Gustav, but the plant is operating normally. [ID:nN29402694]
Valero said heavy oil cracker work at its 340,000 bpd Corpus Christi, Texas, refinery had no impact on production.
U.S. crude oil futures were up on the storm fears. September gasoline and heat oil futures will expire at Friday's close, lending volatility to the day's trade. [O/N]
For a list of refinery outages, click [REF/US]
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U.S. Gulf Coast cash gasoline differentials gained again on Friday, newly prompt cycle 51 M3 fall-grade gasoline traded at 21.75 cents over the Oct. RBOB contract, after earlier trades as low as 16.50 cents over.
Scheduling cycle 49 61-grade ultra-low sulfur diesel rebounded from Thursday's levels to trade at 8.50 cents over the Oct. heating oil contract.
Jet fuel was bid at 11.50 cents over with no offers seen.
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M2 regular M2 was last pegged at 7.00 cents under the Sept. futures, regaining some lost ground after having fallen to trade as low at 8.50 cents under late Thursday, down a penny and a half from midday Thursday, traders said.
F2 RBOB gasoline was set at evens to the Sept. merc, up from evens to 0.50 cent under earlier.
Among the premiums, V2 was steady at 20 cents over and H2 PBOB at 22 cents over Sept., within the previous day's broad range of 21 to 24 cents over the print.
Most distillates were well offered apart from jet fuel, which was offered at 17 cents over Oct. futures, unchanged with late Thursday. Kerosene was at Oct. plus 18 cents.
Heating oil barges were flat at 1.00 cent below Sept. futures, and likewise ULSD diesel at 8.00 cents over Oct.
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Midwest cash products were thinly traded on Friday as volatile benchmark contracts ahead of Tropical Storm Gustav kept dealers on the sidelines.
In Group Three, gasoline was pegged at 3.25 cents over the Sept. RBOB board, unchanged from late Thursday levels.
Gasoline for early Sept., which will be prompt next week, as pegged at 15/16 cents over the Oct. board.
Chicago gasoline moved up slightly, trading 0.75 cent higher at 16.75 cents over the Oct. RBOB board.
Ultra-low sulfur diesel was pegged steady in the Midwest, with Chicago last trading at 17 cents over the Oct. heating oil board and Group Three at 14.50 cents over Sept. futures. (Reporting by Haitham Haddadin and Rebekah Kebede)
