Midwest Gasoline Basis Down, Ignoring Stockpile Drop


   
Barani Krishnan
DTN Refined Fuels Market Reporter

   SECAUCUS, NJ (DTN) -- The basis for gasoline on the Buckeye Storage Complex, 
Wolverine pipeline and Chicago fell Wednesday (5/13) against NYMEX gasoline as 
volatility in Midwest fuel differentials offset federal data pointing to a 
weekly inventory drop.

   At Buckeye, the gasoline basis weakened by 21.5cts to stand at a premium of 
8.5cts gallon to the June gasoline contract on NYMEX.

   On Wolverine, the gasoline differential fell by a more modest 11.5cts to 
18.5cts gallon above the front-month gasoline futures contract.

   In Chicago, the decline was even narrower, sliding 7.5cts to a rest at a 
premium of 8.5cts  gallon to June gasoline.

   Midwest fuel differentials have been volatile over the past week as refiners 
initially held to inventories on concerns of a supply squeeze before 
relinquishing them, resulting in price swings, said traders familiar with the 
situation.

   The market could see more gyration in the coming days after the U.S. Energy 
Information Administration (EIA) reported Wednesday that gasoline stockpiles in 
the Midwest fell for a fourth consecutive week last week to a near six-month 
low.

   Motor gasoline inventories in PADD 2 fell by 600,000 bbl to 45.6 million bbl 
during the week ended May 8, the EIA data showed. This was below the 48.4 
million bbl recorded in the same week of last year and the lowest since the 
week ended Nov. 28, 2025, when inventories stood at 44.9 million bbl.




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