HOUSTON (Reuters) - Tight supplies in the New York Harbor market pushed gasoline basis higher on Monday as trading moved to the November RBOB contract on the New York Mercantile Exchange, traders said.
Harbor conventional M3-grade gasoline for delivery on Friday rose 7.50 cents a gallon to trade first at 42.00 cents over November RBOB futures and later at 43.00 cents over, traders said.
Supply issues emerged at the close of the trading session on Friday when the expiring October RBOB gasoline futures contract rose as much as 28.00 cents a gallon.
Futures traders were caught without adequate supplies at expiry in the Harbor, the delivery point for RBOB gasoline futures contracts, according to traders.
Harbor gasoline “remains tight and we will expect to see continued volatility and high prices until resupply can make it into this region”, INTL FCStone said in a note on Monday.
Also in the New York Harbor, winter-grade F4 RBOB gasoline for delivery on Wednesday was offered at 47.00 cents over the November RBOB gasoline contract.
RBOB gasoline for delivery on Friday was offered at 46.00 cents over futures, while RBOB for October 10 delivery stayed unchanged at 30.00 cents over.
On the Gulf Coast, gasoline markets showed gains on Monday on news of problems at a pair of regional refineries and notice that a third would shut units for maintenance this month.
A3 CBOB gained a quarter cent per gallon to 3.00/3.50 cents over November RBOB futures on the NYMEX, while conventional M3 gasoline rose by 1.25 cents per gallon to 13.00 cents over, traders said.
Phillips 66 (PSX.N) said most affected units at its 247,000-barrels-per-day (bpd) refinery in Sweeny, Texas had been restarted after a power outage forced a majority of units to shut on Sunday.
Flint Hills Resources also said on Monday that an “operational issue” required a sulfur-recovery unit shutdown at its 284,172-bpd refinery in Corpus Christi, Texas.
And Citgo Petroleum Corp said it would shut units for maintenance this month at its 163,000-bpd Corpus Christi refinery. ID:nWNAB5633]
Gulf Coast jet fuel differentials climbed half a cent per gallon to 0.50/1.50 cents over November NYMEX heating oil differentials, but traders largely attributed the rise to its latest five-day lifting cycle scheduling to move on the Colonial Pipeline on Monday.
In the Midwest, the Group Three gasoline market ignored a boiler explosion at CVR Energy Inc’s (CVI.N) 70,000-bpd Wynnewood, Oklahoma, refinery on Friday and started trading against the NYMEX November RBOB gasoline futures contract about a penny per gallon lower than the previous session’s levels.
Group Three gasoline traded early at 19.00 cents over November RBOB gasoline futures and was later offered at 19.25 cents over, traders said.
CVR Energy said it resumed a plant-wide overhaul at the refinery on Saturday. The plant was already shut for work when the boiler exploded, killing one worker and injuring another.
Chicago gasoline was seen slightly stronger, up a cent a gallon at 14.50/15.50 cents over NYMEX November futures.
Reporting by Kristen Hays in Houston and Selam Gebrekidan in New York; Editing by Dale Hudson