Midwest cash gasoline differentials rose on Monday following cycle changes in both Chicago and Group Three markets.

The Group Three market, which started its first day of trading against the September RBOB gasoline contract in the New York Mercantile Exchange (NYMEX), saw differentials rise about 4.00 cents a gallon because of the cycle roll.

The Chicago market started trading the second cycle of the month leading to a half-cent-a-gallon rise in gasoline differentials.

On the Gulf Coast, cash product markets were largely steady though jet fuel differentials slipped half a cent per gallon.

Traders said they were watching a tropical system 250 miles (402 km) east of Martinique in the eastern Caribbean Sea that had a 90 percent chance of becoming a tropical cyclone in the next two days, according to the National Hurricane Center.[ID:nL3E7J12YW]

That system will be named Emily if it becomes a tropical storm or hurricane.

However, most computer models show that system remaining in the Atlantic Ocean, with only one model showing it moving into
the oil-rich Gulf of Mexico.

New York Harbor trade was sidelined Monday by the extreme volatility of the futures market on the New York Mercantile Exchange. The Chicago Board Options Exchange's Oil Volatility Index .OVX soared to its highest level since June 21 at 35.63 percent, as the futures markets reacted to the U.S. debt ceiling deal.

News that Colonial Pipeline had frozen nominations for gasoline cycles 43 and 44 north of Collins, Mississippi, relegated many traders back to planning and away from trading activities. [ID:nEMS06UJ4G] [ID:nEMS06UU5F]

For more refinery news, please go to [REF/OUT]


Cycle 44 conventional M2 gasoline was seen done at 9.00 cents under September RBOB futures, up a quarter cent.

Scheduling Cycle 43 61-grade ultra-low sulfur diesel was seen done at 2.85 and 3.00 cents over the September heating oil screen, flat with Friday's levels.

Cycle 44 54-grade jet fuel slipped half a penny to 5.00/6.00 cents over.

Heating oil for Cycle 44 was steady at 4.75/4.25 cents under.


Prompt M2 conventional gasoline was pegged at 0.75/0.25 cents under September RBOB futures. Any-August M2 material was
talked at either side of flat to September RBOB futures. 

Prompt F2 RBOB was called 6.25/5.75 cents over, up modestly on the day, while any-August material was pegged at 3.25/2.75
cents over.

Prompt heating oil was talked at 1.00/0.50 cents under September heating oil futures, while any-August heating oil was called 1.25/0.75 cents under.

Prompt ULSD was pegged at 6.50/7.00 cents over, while any-August barrels were talked at 6.25/6.75 cents over.

Prompt jet fuel was called 7.25/7.75 cents over.

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Group Three gasoline traded at 3.50 cents under September RBOB gasoline futures compared to the 7.50 cents under August
futures seen late on Friday.

Cycle 2 Chicago gasoline rose a half cent after the cycle roll and traded at 4.50/4.00 cents under futures.

Ultra-low sulfur diesel in Group Three was seen at 5.75/6.00 cents over September heating oil futures, about 0.60 cents lower than the previous cycle.

Cycle 2 Chicago ULSD rose 0.75 cent to trade at 0.25 cents under futures.