PNW Sub-Octane Premium Basis Spikes by Over 20cts

MIAMI, FL (DTN) — Pacific Northwest sub-octane premium basis hiked by 25cts on Friday (11/21), driven by firm buying interest .

Bids for PNW sub-octane were reported between plus 38cts and plus 40cts, with no offers to counter, moving the basis to a 40.5cts premium over the December NYMEX RBOB futures contract.  However, confirmation of trades at those levels were not confirmed at the time of publication.

The shutdown of the Olympic Pipeline, operated by BP, continues to put upward pressure on PNW spot prices amid declining inventories. Olympic Pipeline shutdown after BP Pipelines North America halted portions of the system on November 11 when a sheen was discovered near a right of way east of Everett, Washington.

The pipeline carries more than 90% of refined products to be delivered to the Portland area.