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U.S. Cash Products-Midwest products rise as refinery workers strike

Tue, 10th Feb 2015 22:29

* Gulf gasoline partly retreats from gains on refinery unit outages * NY Harbor differentials mixed, gasoline stronger, distillates weaker * RINs credit prices slip NEW YORK, Feb 10 (Reuters) - U.S. Midwest refined oil products strengthenedand added to Monday's gains as reluctant sellers hold on to gasoline, and amidconcerns about the effect on production from an expanding strike called byrefinery workers, said brokers and traders. The differential for Chicago CBOB gasoline for cycle-2 February rose 1.50cents to 2.50 cents over the benchmark March RBOB gasoline futures, afterstrengthening more than five cents after a late surge on Monday. Group Three gasoline rose 1.50 cents to even to the benchmark March RBOBfutures traded on the New York Mercantile Exchange (NYMEX), adding to the halfpenny gain on Monday. Chicago ultra-low sulfur diesel (ULSD) on Tuesday edged up 0.50 cent to 7.50cents under March heating oil futures, while Group ULSD gained a penny to2.50 cents under. At least some of the region's strength was due to the United Steelworkersunion expanding a strike by U.S. refinery workers on Sunday to BP Plc's Whiting, Indiana, refinery and the company's joint-venture refinery with HuskyEnergy in Toledo, Ohio. But some Midwest brokers said the strong gasoline differentials were due torefiners storing gasoline to take advantage going forward of the huge premium ofApril RBOB gasoline futures over the current front-month March. April's premium to March was more than 24 cents on Tuesday,based on settlements. U.S. Gulf Coast cash gasoline differentials retreated on Tuesday, shavingsome of Monday's gains on gasoline-making unit outages at regional refineries,traders said. A4 CBOB, or conventional regular gasoline blendstock formulated for blendingwith 10 percent ethanol, traded at a quarter-cent discount to March RBOBfutures, down 0.75 cent per gallon from Monday's finish, traders said. Conventional M4 gasoline traded at a quarter-cent premium to March RBOBfutures, down half a cent per gallon, traders said. Differentials for both grades rose 2.75 cents per gallon on Monday on newsthat a fluid catalytic cracking unit (FCCU) shut for unplanned repairs onSaturday, and two FCCUs were shut for planned work at ExxonMobil Corp's 502,500 bpd refinery in Baton Rouge, Louisiana. New York Harbor differentials were mixed on Tuesday. F5 RBOB gained 1.50cents to 4.75 cents under March RBOB futures, while M4 conventional gasolinegained half a penny to 1.00 cent under. ULSD in New York fell 0.75 cent to 1.50 cents over March heating oil, andjet fuel eased 0.25 cent to 6.00 cents under. Renewable Identification Number (RIN) credits drifted lower, traders andbrokers said. Ethanol RINs for 2015 compliance year traded at 71.5 to 73 centseach, after trading on Monday at 73 and 73.5 cents. Credits for 2014 traded half a cent lower at 73.5 cents. Biodiesel credits for 2015 traded 2.5 cents lower at 87.5 cents each.Credits for 2014 had sellers' offers notionally pegged about three cents below2015 credits. For more refinery news, please go to Latest day Timing NYMEX Bid Offer Change Contract U.S. GULF COAST <0#P-USG> * Scheduling A4 CBOB gasoline Cycle 10 RBOB -0.50 0.00 -0.75 M4 conventional gasoline Cycle 10 RBOB 0.00 0.50 -0.50 62-grade ULSD * Cycle 9 HO -5.50 -5.00 -0.25 54-grade jet fuel Cycle 10 HO -13.00 -12.00 0.00 Heating oil Cycle 9 HO -20.00 -19.50 -0.25 NEW YORK HARBOR <0#P-NYH> M4 conventional gasoline Prompt RBOB -1.25 -0.75 0.50 Any-Month RBOB -0.75 -0.50 0.25 F5 RBOB Prompt RBOB -5.00 -4.50 1.50 Any-Month RBOB -4.00 -3.50 0.75 ULSD Prompt HO 1.25 1.75 -0.75 Any-Month HO 1.50 2.00 -0.25 Heating oil Prompt HO -6.50 -6.00 -0.25 Any-Month HO -6.50 -6.00 -0.25 Jet fuel Prompt HO -6.25 -5.75 -0.25 Any-Month HO -6.25 -5.75 0.00 MIDWEST <0#P-G3> <0#P-MC> Chicago CBOB gasoline Cycle 2 RBOB 2.25 2.75 1.50 Chicago ULSD Cycle 2 HO -7.75 -7.25 0.50 Group Three gasoline RBOB -0.25 0.25 1.50 Group Three ULSD HO -2.75 -2.25 1.00 (Reporting by Kristen Hays in Houston and Robert Gibbons in New York; Editingby Gunna Dickson)

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