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U.S. Cash Products-Midwest gasoline surges on BP Indiana refinery outage

Tue, 11th Aug 2015 17:52

* Gulf gasoline rises on expected Midwest demand * NY Harbor gasoline grades steady, supported by Bayway refinery problem HOUSTON, Aug 11 (Reuters) - Midwest gasoline jumped sharply on Tuesday, withChicago's differential surging 45 cents to 60 cents a gallon above benchmarkfutures, and with Group Three also posting a second day of sharp gains on theshut crude unit at BP's refinery in Whiting, Indiana, brokers said. Chicago cash CBOB gasoline for cycle-2 August barrels traded at 35, 40 andthen as strong as 60 cents a gallon above the September RBOB futures benchmark,after gaining 17 cents on Monday to trade as strong as 15 cents above futures. Group Three gasoline traded at 17.50 cents above September futures, up 14cents from Monday. Ultra-low sulfur diesel (ULSD) posted more modest gains, up eight cents inChicago at 9.00 cents a gallon above September ULSD futures. Group ThreeULSD was pegged only a penny stronger around 2.00 cents above the benchmark. BP Plc expects to restart the largest crude distillation unit at its413,500-barrel-per-day (bpd) Indiana refinery between Aug. 19 and Aug. 22,according to sources familiar with the refinery's plans. The unit shut onSaturday. Adding to the region's tight supply picture, Marathon Petroleum hasshut a catalytic reformer at its 210,000 barrel-per-day refinery in Robinson,Illinois, as part of planned maintenance that could last up to 10 weeks. The sharp spike in Midwest differentials helped boost U.S. Gulf Coastwholesale gasoline on anticipated stronger demand in its neighboring markets tothe north, traders said. A2 CBOB, or conventional regular gasoline blendstock formulated for blendingwith 10 percent ethanol, traded at 9.00-cent, 8.50-cent, 8.00-cent and 7.50-centdiscounts to September RBOB futures, 1.75 cents per gallon higher. Conventional M2 gasoline swung to a half-cent premium to futures, up 2.50cents per gallon, traders said. Gulf heating oil climbed 2.50 cents per gallon to a 21.00-cent discount toSeptember ULSD futures as its latest five-day lifting cycle was scheduled tomove on the Colonial Pipeline, traders said. New York Harbor gasoline was steady, but supported by its own region'srefinery issues. F2 RBOB had sellers asking 6.00 cents above September RBOB forprompt supply and M2 gasoline was pegged at 1.00 cent or 1.25 cents above fornearby cycles on Colonial's pipeline, brokers said. Phillips 66 will keep a powerformer unit, which produces productsused in blending gasoline, shut for "weeks" at its 238,000-bpd Bayway refineryin Linden, New Jersey, according to a person who is familiar with the plant'soperations. Distillates were mixed in the Harbor. Ethanol Renewable Identification Number (RIN) credits for 2015 traded at 39and 40 cents each, weakening during the day, brokers said. Credits for 2014 hadsellers asking 41 cents and buyers bidding 39.5 cents each. Biodiesel credits for 2015 traded at 67.5 cents each, the lower end ofMonday's trading range. No trades or quotes were heard for 2014 credits. For more refinery news, please go to Latest day Timing NYMEX Bid Offer Change Contract U.S. GULF COAST <0#P-USG> * Scheduling A2 CBOB gasoline Cycle 46 RBOB -7.75 -7.25 1.75 M2 conventional gasoline Cycle 46 RBOB 0.25 0.75 2.50 62-grade ULSD Cycle 45 HO -6.75 -6.25 0.00 54-grade jet fuel Cycle 45 HO -13.25 -12.25 0.75 Heating oil * Cycle 44 HO -21/25 -20.75 2.50 NEW YORK HARBOR <0#P-NYH> M4 conventional gasoline Prompt RBOB 1.00 1.50 0.00 F4 RBOB Prompt RBOB 5.50 6.00 0.00 ULSD Prompt HO -0.50 0.00 0.75 Heating oil Prompt HO -14.75 -14.25 0.50 Jet fuel Prompt HO -7.50 -7.00 -0.25 MIDWEST <0#P-G3> <0#P-MC> Chicago CBOB gasoline Cycle 2 RBOB 59.25 60.25 45.00 Chicago ULSD Cycle 2 HO 8.75 9.25 8.00 Group Three gasoline RBOB 17.25 17.75 14.00 Group Three ULSD HO 1.50 2.50 1.00 (Reporting by Kristen Hays in Houston and Robert Gibbons and Chris Prentice inNew York; Editing by James Dalgleish)

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