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U.S. Cash Products-Midwest gasoline surges as Indiana refinery unit shut

Mon, 10th Aug 2015 18:00

* Group Three and Chicago gasoline strengthen in Midwest markets * Gulf Coast gasoline up on latest pipeline scheduling * NY Harbor gasoline grades mixed; jet and high sulfur heating oil stronger HOUSTON, Aug 10 (Reuters) - Midwest cash gasoline surged on Monday on newsof crude-distillation-unit (CDU) repairs at BP Plc's 413,500-barrel-per-day (bpd) refinery in Whiting, Indiana. Group Three gasoline reacted first, trading at 1.00 cent above the benchmarkSeptember RBOB futures, six cents stronger from its valuation late Friday.Sellers offers later strengthened to 3.00 cents over, a broker said. Chicago CBOB gasoline for cycle-2 August barrels traded at a 2.00-, 4.25-and then 7.00-cent premium to September RBOB, after being pegged at 2.50 centsbelow the benchmark late on Friday. The Whiting refinery's 240,000-bpd CDU, known as Pipestill 12, was shut by amalfunction on Saturday, sources familiar with plan operations said, confirminga report by energy industry intelligence service Genscape. Midwest ultra-low sulfur diesel (ULSD) differentials also strengthened.Chicago ULSD had buyers bidding 1.00 cent under September ULSD, withsellers asking 5.00 cents over. It was pegged at 0.50 cent below late Friday. Group Three ULSD was at a bid/offer spread of 0.50 cent/1.50 cents above thefutures benchmark, after being pegged even to futures late Friday. In addition to Whiting, curbed production at Valero Energy Corp's refinery in Memphis, Tennessee, was supportive. Marathon Petroleum Corp's refinery in Catlettsburg, Kentucky, hasresumed operations after last week's shutdown that had supported the region'sdifferentials. U.S. Gulf Coast cash gasoline differentials rose on Monday as the latestfive-day lifting cycles for A- and M-grades were scheduled to move on theColonial pipeline, traders said. In a flurry of trades, A2 CBOB, or conventional regular gasoline blendstockformulated for blending with 10 percent ethanol, was seen done at 10.50-,10.00-, 9.50-, -9.00-, 8.75- and 8.50-cent discounts to September RBOB futures,up 2.50 cents per gallon. A2 later appeared to pare some of those gains, with an offer seen at a9.25-cent discount to futures, or down 1.75 cents per gallon from Friday'sfinish. Trade for conventional M2 gasoline was more muted, with deals seen at 2.25-and 2.00-cent discounts to futures, up 0.25 cent per gallon. New York Harbor gasoline were mixed as M2 conventional gasoline for Colonialcycle-43 barrels was pegged at 1.25 cents above September RBOB, or half a pennystronger from Friday. F2 RBOB was steady at around 5.25 cents over. Jet fuel gained a penny to 6.00 cents below September ULSD and high sulfurheating oil gained 0.50 cent to 14 cents below the benchmark. Ethanol Renewable Identification Number (RIN) credits for 2015 had buyersbidding 39 cents each and sellers asking 40 cents, after Friday's trades from 39to 39.5 cents. Credits for 2014 had buyers bids at 39.5 cents, steady to Friday,while sellers asked 14 cents, or 0.50 cent stronger from Friday's offers. Biodiesel credits for 2015 traded at 68 and 67.5 cents, after Friday'strades at 68 cents. Credits for 2014 had sellers' offers steady at 66 cents,with buyer's bids at 64 cents, also steady to Friday. Latest day Timing NYMEX Bid Offer Change Contract U.S. GULF COAST <0#P-USG> * Scheduling A2 CBOB gasoline Cycle 45 RBOB -9.75 -9.25 1.75 M2 conventional gasoline Cycle 45 RBOB -2.25 -1.75 0.25 62-grade ULSD Cycle 45 HO -7.25 -6.75 0.00 54-grade jet fuel Cycle 45 HO -13.50 -12.50 0.00 Heating oil Cycle 44 HO -20.25 -19.75 2.00 NEW YORK HARBOR <0#P-NYH> M4 conventional gasoline Prompt RBOB 1.00 1.50 0.50 F4 RBOB Prompt RBOB 5.00 5.50 0.00 ULSD Prompt HO -1.00 -0.50 0.00 Heating oil Prompt HO -14.25 -13.75 0.50 Jet fuel Prompt HO -6.25 -5.75 1.00 MIDWEST <0#P-G3> <0#P-MC> Chicago CBOB gasoline Cycle 2 RBOB 6.50 7.00 9.50 Chicago ULSD Cycle 2 HO -1.00 5.00 2.50 Group Three gasoline RBOB 1.00 3.00 6.00 Group Three ULSD HO 0.50 1.50 1.00 (Reporting by Kristen Hays in Houston and Robert Gibbons in New York, editingby G Crosse)

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