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US refined products calendar spreads rally on Colonial outage
[NEW YORK] US refined product calendar spreads, particularly the front month October contract's premium to November contracts, rallied on Friday, continuing a streak of gains after a leak was found on Colonial Pipeline's main gasoline line.
US gasoline's front-month calendar spread RBV6-X6 jumped to a fresh record high on Friday while the US ultra low sulfur diesel (ULSD) front-month calendar spread HOV6-X6 rose to its highest in more than a year.
Colonial, the largest US refined products pipeline system, shut its main gasoline and distillate lines last week after a leak was discovered in Shelby County, Alabama.
The company has since begun operations of its gasoline conduit, Line 1, at reduced rates and is pumping some of the fuel on its distillate line, which has been completely restarted.