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US Cash Products-Chicago mogas slides further

Tue Jun 9, 2009 9:57pm IST
 
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NEW YORK, June 9 (Reuters) - Differentials for prompt Chicago gasoline fell further as supplies from the Gulf Coast move up the Explorer Pipeline to counter any shortfall from the region's refinery outages, traders said on Tuesday.

Prompt cycle 2 Chicago gasoline differentials traded at 10 cents over the July RBOB screen, about 30 cents lower than where cycle 1 was pegged at last Friday.

Trade sources said longer-than-anticipated refinery outages in the Chicago region was a major factor in the spike in wholesale gasoline prices there.

"Chicago is a cul-de-sac market," said one Midwest trader.

Trade sources said that the FCC unit BP's Whiting, Indiana is down longer than trade originally thought and, given their concerted buying, the market has doubts if Marathon's Robinson, Illinois refinery has returned completely from a turnaround earlier this spring.

Gulf Coast gasoline differentials remain flat from late last week.

New York Harbor gasoline is also seen trading in range, despite the return to planned rates of Valero's Delaware City, Delaware refinery [ID:nN09370868] and the restart of a FCC unit at Sunoco's Philadelphia refinery [ID:nN09375980]

U.S. crude futures were up over $1 on a weaker dollar.[O/N]

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

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