Gasoline pump prices in Midwest, West Coast remain indifferent to Iran tensions

Houston — Pump prices and differentials in the US Midwest and West Coast markets appeared unfazed by gains in the NYMEX February RBOB futures contract seen Monday morning after airstrikes in Baghdad that killed Iran's Major General Qassem Soleimani Friday.

According to data published Friday by the US Energy and Information Administration, Stocks of total gasoline in the Midwest gained approximately 1.48 million barrels in the week ended December 27, which may help explain the muted reaction seen Monday.

The differential for suboctane in Tulsa, Oklahoma, was unchanged from Friday at NYMEX February RBOB futures minus 8.75 cents/gal. Market sources said that activity in the region appeared quiet, with especially low volumes of trade seen in gasoline markets in Chicago, Illinois.

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According to data published by US auto club AAA, the average pump price for regular-grade gasoline in Illinois is down 2 cents/gal from one month ago, at $2.66/gal.

On the US West Coast, differentials also held steady Monday, with the differential for CARBOB in Los Angeles heard at NYMEX February RBOB futures plus 5 cents/gal.

Refineries in California saw gains in gasoline production and a slight draw in stocks in the week ended December 27, California Energy Commission data showed Friday. Refinery production of non-California gasoline rose to 1.14 million barrels from 988,000 barrels the week prior, a weekly gain of 15.9%. Production of non-California gasoline was about 52.5% higher year on year. CARBOB production also gained during the week, rising to 6.70 million barrels from 6.39 million barrels, a gain of 4.90%.

AAA data showed that pump prices in California were down 19 cents/gal on the month, with the average price for regular-grade reported at $3.54/gal.

-- Ken Raphael, kenneth.raphael@spglobal.com

-- Edited by Zac Aiuppa, newsdesk@spglobal.com