Bloomberg News

Gulf Gasoline Rises to 1-Month High as Shut Crude Unit Assessed

October 04, 2011

Oct. 4 (Bloomberg) -- Gulf Coast gasoline rose to the highest level in a month as Pasadena Refining System Inc., a unit of Petroleo Brasileiro SA, investigated the cause of a Sept. 30 fire on a crude unit.

The company is determining how long the crude unit will be shut, Ciro Ribeiro, a Petrobras spokesman, said in an e-mail. The Pasadena, Texas, plant can process 106,500 barrels of crude a day, according to data compiled by Bloomberg.

“The coker, the utilities and the S Zorb units are in operation at this time,” Ribeiro said. An S Zorb unit reduces the sulfur levels in gasoline.

The premium for conventional, 87-octane gasoline on the Gulf Coast rose 2.12 cents to 4.25 cents a gallon versus futures traded on the New York Mercantile Exchange at 1:04 p.m., according to data compiled by Bloomberg. It’s the highest level since Sept. 1. Prompt delivery gained 2.32 cents to $2.5555 a gallon.

Ultra-low-sulfur diesel in the Gulf strengthened 0.38 cent to 3.88 cents over heating oil futures.

PBF Energy Partners LP reported emissions at its Delaware City, Delaware, refinery after a malfunction at a hydrogen purification system yesterday, according to a filing with state regulators.

The premium for reformulated, 87-octane gasoline in New York Harbor rose 1 cent to 10.25 cents a gallon, the highest level since Sept. 14.

Conventional, 87-octane gasoline in Chicago held at a premium of 6.88 cents a gallon versus futures.

Enbridge Inc. started its Ozark oil pipeline in Illinois today after it was shut Sept. 30.

The Ozark line, which runs 435 miles (700 kilometers) from Cushing, Oklahoma, to Wood River, Illinois, was shut after an underwater survey found a 110-foot segment of the line had been exposed at a Mississippi River crossing.

--With assistance from Aaron Clark in New York. Editors: David Marino, Charlotte Porter

To contact the reporter on this story: Paul Burkhardt in New York at pburkhardt@bloomberg.net.

To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net.


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