Midwest CBOB Basis Mixed Amid Tumbling Futures


   
Barani Krishnan
DTN Refined Fuels Market Reporter

   SECAUCUS, NJ (DTN) -- Midwest CBOB cash basis retreated from three-month 
highs Tuesday (8/4) as ample refinery output and a weakening in futures 
triggered a swift market correction.

   Chicago CBOB basis led regional declines, tumbling 15cts on the day to a 
4.50cts premium to September RBOB futures. On Monday (8/3), Chicago CBOB basis 
hit a three-month high of 19.50cts.

   On Tuesday, the CBOB basis for both the Buckeye and Wolverine pipelines 
narrowed by 14.5cts to settle at a 5.0cts premium over the benchmark futures 
contract. 

   Tuesday's basis retracement followed Monday's sharp surge, as downstream 
buyers pulled back from elevated cash levels while futures plunged.

   NYMEX September RBOB tumbled $0.1445, or 4.9%, to settle at $2.8522 gallon, 
extending losses amid diplomatic efforts to end the U.S.-Iran war.

   High regional output from PADD 2 refiners operating at 100.3% utilization 
further capped prompt gains by keeping distribution channels well supplied.

   Bucking the broader regional retreat, Group 3 CBOB basis strengthened 2cts 
on the day to finish at a 0.75cts discount. The mid-continent market held firm 
due to tighter localized supply and differing pipeline scheduling cycles 
compared to Chicago hubs.




(c) Copyright 2026 DTN, LLC. All rights reserved.