June 4, 2009 / 5:31 PM / in 8 years

US Cash Products-Chicago gasoline eases, but still strong

NEW YORK, June 4 (Reuters) - Prompt Chicago gasoline steadied, albeit at high premiums on Thursday in quiet trade after a recent run up, dealers said.

Chicago gasoline differentials eased a penny by midday on Thursday, trading at 39 cents over the July RBOB benchmark.

Low stocks in the Explorer and TEPPCO pipelines out of the Gulf Coast coupled with regional refinery work both unplanned and ongoing pushed up differentials to 40 cents over the July RBOB futures screen.

Strong Midwest demand had minimal impact on Gulf Coast differentials, with prompt barrels of conventional gasoline gaining only a quarter point.

In the New York Harbor, gasoline also gained minimally as regional refineries return from both planned and unplanned outages.

Sunoco’s Marcus Hook FCCU was back at planned rates after the unit was shut by a May 17 explosion and fire at its 178,000 barrel per day refinery [ID:nN03130410]

Crude oil futures rose with RBOB futures flirting with $2 a gallon for the first time since October as the number of jobless filings declined. [O/N]

For a complete list of refinery outages, click [REF/US]

U.S. GULF COAST <0#P-USG>

Prompt cycle 33 M2 inched up a quarter cent to trade at 4.75 cents under the July RBOB screen, down from the 3.75 cents under scheduling cycle 32 traded at on Tuesday.

Prompt cycle 33 61-grade ultra low sulfur diesel also gained a quarter point to trade at 1.25 cents under the July heating oil screen,

NEW YORK HARBOR <0#P-NYH>

Prompt M2 conventional rose to about 5.50 to 5.75 cents under the higher July RBOB futures from trading at about 6.00 cents under futures late Wednesday, traders said.

Prompt F2 was talked at about 2.25 to 2.50 cents over the July print while barrels by June 10th talked at 1.50 and 2.00 cents over, up from 1.25 cents over on Wednesday.

Among the premiums, H2 PBOB was last pegged at 17.25 cents over the print after having fetched 17.50 cents over the print late Wednesday, traders added.

In a thinly traded distillates market, ULSD offers rose half a penny at 2 cents over the benchmark July heating oil futures but heating oil offers eased a quarter cent at 4.50 cents under the print.

Some buying interest also lifted offers for jet fuel in the Harbor to 2.50 cents over from 1.75 cents over.

MIDWEST <0#P-G3> <0#P-MC>

Chicago gasoline for cycle 1 was quiet on Thursday, trading a penny lower at 39 cents over the July RBOB benchmark, after climbing another 4 cents to trade at 40 cents over late Wednesday.

Despite tight supplies of gasoline in Chicago, plentiful RBOB inventories pushed values of the fuel sharply lower.

RBOB in the Chicago market was offered at a 15 cent discount to cycle 1 gasoline down about 15 cents since the beginning of the week.

In Group Three, gasoline differentials inched up about half a cent, pegged at 5/5.25 cents over the July RBOB contract.

Group Three ultra-low sulfur diesel eased a cent to trade at 0.75 cent under the July heating oil futures, while in Chicago, the grade was flat at 2.50 cents over.

Reporting by Janet McGurty in Toronto; Haitham Haddadin and Rebekah Kebede in New York

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