NEW YORK (Reuters) - Midwest gasoline for prompt delivery weakened further Friday as buyers who had amassed large supplies in the previous pipeline delivery cycle tried to unload volumes, traders said.
CBOB gasoline for prompt delivery into Chicago fell 2.25 cents per gallon to trade at 6.50 cents per gallon below the futures contract on the New York Mercantile Exchange. The price of Chicago CBOB has declined after buyers became oversupplied in the previous cycle for Buckeye pipeline deliveries and are trying to unload cargoes, traders said. In the Group 3 section of the Midwest, gasoline also eased, dropping 0.25 cent per gallon, traders said. Group 3 V-grade gasoline fell amid heavy selling, traders said. Diesel for prompt delivery in Group 3 slumped, dropping 1.50 cents per gallon as few buyers were seen, traders said.
On the Gulf Coast, M4 conventional gasoline for prompt delivery traded 1.25 cents per gallon higher late in the session, with deals done at 0.50, 1.00, and 1.50 cents per gallon above the futures contract, traders said. The rally came on heavy buying amid concerns about supply cuts due to refinery disruptions on the coast, traders said.
In New York Harbor, heating oil strengthened 1 cent per gallon, reversing course from Thursday’s trades. The move came as colder weather was expected to return to the region over the weekend, traders said.
Reporting by Jessica Resnick-Ault, additional reporting by Jarrett Renshaw; Editing by Lisa Shumaker