Well - today has been more than eventfull....
Group 3 basis is up .21 today moving the number to a total of .50 at the current state. Based on these values marketers would be best served managing their gasoline inventories based off Chicago or even Gulf Coast economics (depending upon geographic placement). Today we are seeing differentials close to .20 - .30 per gallon between the different pipelines and are offering arbitrage advantages for marketers. From what is looks like, there is a shortage in PADD 2 and this, coupled with Group 3 refinery outages are making a blast in basis. A source told me he is under the impression there are a number of marketers who tried to take a short position due to the backwardation in the market and wanted to try to offload the product before the cycle shift. This came up to a substantial number of short barrels in the Group and moved basis much higher than in other areas of the country.
If you have the ability to purchase Chicago or Gulf Coast economics, I would suggest looking into those areas to source your supply needs.
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