PNW Sub-Octane Regular Basis Spikes 10cts on Firm Demand

MIAMI, FL (DTN) — Basis for prompt Pacific Northwest sub-octane regular surged by 10.5cts on Wednesday (2/11) to a 25.5cts premium over March NYMEX RBOB futures, on the back of firm demand.

Early Wednesday, bids for PNW sub-octane regular were heard talked at a 25cts premium to the same benchmark, showing an increase in buying interest across the region caused by supply tightness. 

The basis had been pegged at a 15.5cts premium to March NYMEX RBOB futures contract in the previous trading session according to DTN.

Refining utilization in the West Coast (PADD 5) dropped to 82.4% in the week ending February 6 from 83.2% the prior week, according to most recent data from Energy Information Administration.