Bloomberg News

Gulf Gasoline Strengthens After Conoco, Valero Power Outages

October 19, 2011

Oct. 19 (Bloomberg) -- Gulf Coast gasoline rose after ConocoPhillips’ Sweeny refinery in Texas and Valero Energy Corp.’s Houston plant experienced power failures.

Process units at the Sweeny plant were restarted after the event occurred yesterday, according to a filing with the Texas Commission on Environmental Quality. Valero’s steam supply was interrupted after a power outage, according to a separate filing from the agency.

The discount for conventional, 87-octane gasoline in the Gulf Coast narrowed 0.67 cent to 3.13 cents versus futures traded on the New York Mercantile Exchange at 11:30 a.m., according to data compiled by Bloomberg. Prompt delivery slid 1.15 cents to $2.6974 a gallon.

Valero is returning the Houston refinery to planned rates after a power failure yesterday, Bill Day, a company spokesman, said in an e-mail.

Oil product prices in the U.S. refining hub may also rise as refinery workers in Brazil plan to carry out a work slowdown.

Petroleo Brasileiro SA employees and other oil workers in Brazil plan to carry out a work slowdown today at refineries, platforms and plants to push for salary increases, said Joao Antonio de Moraes, head of the union known as FUP.

The discount for ultra-low-sulfur diesel in the Gulf narrowed 0.38 cent to 0.75 cent a gallon versus futures.

--Editors: Richard Stubbe, David Marino

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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