Gulf Coast gasoline declines as focus turns to December

NEW YORK (Reuters) - Gasoline for prompt delivery on the U.S. Gulf Coast fell Wednesday, as the market focused on deliveries in December, a month when U.S. demand declines seasonally, traders said.

U.S. Gulf Coast M4 conventional gasoline fell three quarters of a cent, trading 2.85 cents higher than the gasoline futures benchmark on the New York Mercantile Exchange, market participants said.

A4 CBOB gasoline fell quarter of a cent, trading 2.75 cents per gallon below futures, traders said.

Gulf Coast 62-grade ULSD gained 0.05 cent, trading 6 cents per gallon below the ultra-low sulfur diesel futures contract on the NYMEX.

Chicago CBOB gasoline was little changed, trading 8 cents per gallon below futures, traders said.​

Chicago ultra-low sulfur diesel was little changed, trading 17 cents per gallon below diesel futures.

Elsewhere in the Midwest, Group 3 V-grade gasoline fell 4 cents, trading 14 cents lower than the benchmark.

Group 3 diesel fell 2 cents, trading 12 cents lower than the benchmark.

In New York Harbor, M3 conventional gasoline was little changed, trading 7.5 cents per gallon above futures, traders said.

Diesel for delivery in New York harbor was little changed, trading 0.15 cents per gallon above futures, traders said.

U.S. gasoline stocks fell by 2 million barrels in the week to 215.75 million barrels, the EIA said, compared with analysts' expectations in a Reuters poll for by 1.9 million-barrel drop.​ Distillate stockpiles, which include diesel and heating oil, fell by 0.4 million barrels in the week to 124.96 million barrels, versus expectations for a 2.3 million-barrel drop, the EIA data showed.Refinery crude runs rose by 58,000 barrels in the last week, EIA said., EIA data showed. Refinery utilization rates rose by 0.4 percentage points.

The RBOB futures contract on NYMEX fell 0.0398 cents, and last traded at $2.4099 a gallon on Wednesday.

NYMEX ultra-low sulfur diesel futures fell 0.0394 cents, and last traded at $2.4754 a gallon on Wednesday.

Renewable fuel (D6) credits for 2021 traded at $1.275 on Wednesday, traders said.

Biomass-based (D4) credits traded at $1.59 each, traders said.

Latest day

Timing NYMEX Bid Offer Change

Contract

U.S. GULF COAST * Scheduling

A4 CBOB gasoline Cycle 61

-2.50

November -3.00 -0.25

RBOB

M4 conventional gasoline Cycle 61

3.10

November 2.60 -0.75

RBOB

62-grade ULSD Cycle 61

-5.80

November -6.20 0.05

HO

54-grade jet fuel Cycle 61

November -23.25 -22.75 0.25

HO

Heating oil Cycle 61

November -28.00 -27.00 3.00

HO

NEW YORK HARBOR Bid Offer Change

M4 conventional gasoline Prompt

November 7.00 8.00 0.00

RBOB

F4 RBOB Prompt Novembe

r RBOB

2.50 3.50 -1.00

ULSD Prompt

November 0.00 0.30 0.00

HO

Heating oil Prompt

November -15.00 -14.00 -1.00

HO

Jet fuel Prompt

November -19.00 -18.50 0.50

HO

MIDWEST Bid Offer Change

Chicago CBOB gasoline Cycle 1

December -8.50 -7.50 0.00

RBOB

Chicago ULSD Cycle 1 Decembe

r HO

-18.00 -16.00 0.00

Group Three gasoline Novembe

r RBOB

-14.25 -13.75 -4.00

Group Three ULSD Novembe

r HO

-12.25 -11.75 -2.00

(Reporting by Jessica Resnick-Ault, additional reporting by Stephanie Kelly; Editing by Rashmi Aich)

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