Midwest Weekly: Group 3 CBOB Up Over 15% on Supply Crunch


   
Barani Krishnan
DTN Refined Fuels Market Reporter

   SECAUCUS, NJ (DTN) -- Group 3 CBOB surged over 15% on the week to lead 
Midwest spot fuel markets higher as physical demand tightened ahead of the 
regional agricultural harvest.

   CBOB in the Midcontinent gained 45.50cts, or 15.43%, on the week to average 
$3.4032 gallon, up from $2.9482 gallon a week ago, DTN data showed.

   PADD 2 cash gasoline markets also mounted a broad recovery across regional 
distribution networks. Chicago CBOB rose 24.90cts, or 8.33%, to average $3.2372 
gallon. At the pipeline level, Buckeye Complex CBOB gained 17.70cts, or 5.86%, 
to average $3.1992 gallon, while Wolverine CBOB advanced 24.80cts, or 8.23%, to 
average $3.2622 gallon.

   The higher cash gasoline prices reflected strong underlying futures support 
and physical market adjustments following the contract rollover to October 
NYMEX RBOB.

   Distillate cash markets posted solid single- to double-digit percentage 
gains across all regional hubs, underpinned by seasonal agricultural demand 
expectations.

   Chicago ULSD rallied 31.05cts, or 7.00%, on the week to average $4.7460 
gallon, while Group 3 ULSD jumped 26.47cts, or 5.96%, to average $4.7098 
gallon. Buckeye Complex ULSD and Wolverine ULSD both surged 31.35cts, or 7.05%, 
on the week to average $4.7600 gallon.

   Aviation fuels matched the upward trajectory across the PADD 2 complex. 
Chicago jet fuel advanced 24.15cts, or 6.31%, to average $4.0660 gallon, while 
Group 3 jet fuel rose 10.55cts, or 2.66%, to average $4.0760 gallon.

   The broad price gains came even as regional refiners ran near full capacity 
ahead of upcoming fall maintenance schedules. Energy Information Administration 
data showed PADD 2 refiners running flat out, with regional crude utilization 
hovering at 101.6%.

   Despite heavy processing throughput, Midwest fuel balances remain tight 
against year-ago levels, keeping spot basis differentials and cash prices firm 
across all major regional trading hubs.

   PADD 2 gasoline inventories fell by 200,000 bbl during the week ended 
September 4 to stand at 43.2 million bbl, the EIA's Weekly Petroleum Status 
Report showed. Year-on-year, regional gasoline stocks fell by 2.4 million bbl 
from the 45.6 million bbl recorded during the corresponding week of 2025.

   Distillate stocks decreased by 300,000 bbl on the week to 28.5 million bbl, 
retreating from the prior week's seven-week high. The draw placed regional 
inventories of the product at 2.1 million bbl lower than the 30.6 million bbl 
logged during the corresponding week last year.

   Regional processing operations have, meanwhile, continued without major 
unplanned outages. BP said its 440,000 bpd Whiting refinery in Indiana has been 
operating normally under business continuity plans despite an ongoing labor 
lockout of approximately 800 United Steelworkers union members.

   Uncertainty surrounding Explorer Pipeline's Glenpool, Oklahoma tank farm 
facility also continues to weigh on regional physical markets following an 
August 17 fire that suspended northbound product movements on the 1,830-mile 
line.




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