Nov. 29 (Bloomberg) -- Gasoline in the Midwest strengthened after supplies of the fuel increased on the Magellan Midstream Partners LP pipeline system as blending components for winter fuel raise inventories.
“The addition of butane does extend gasoline supplies,” Bruce Heine, a Magellan spokesman, said in an e-mail. The Magellan pipeline carries oil products from the Gulf Coast to the region.
The discount for conventional, 87-octane gasoline in the Midwest, or Group 3, weakened 1.75 cents to a discount of 6.75 cents versus futures traded on the New York Mercantile Exchange at 4:32 p.m., according to data compiled by Bloomberg. The fuel for prompt delivery rose 0.35 cent to $2.4716 a gallon.
Winter-grade gasoline has more butane and is less-expensive to produce than summer grades.
The same fuel in Chicago widened 1 cent versus futures to a discount of 9 cents a gallon.
Regular gasoline in New York Harbor gained 0.12 cent to a premium of 3.5 cent versus futures.
The same fuel in the Gulf Coast narrowed its discount to futures by 0.3 cent to 5.5 cents a gallon.
--Editors: Bill Banker, Margot Habiby
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