Bloomberg News

Midwest Diesel Gains on Refinery Maintenance, Farming Demand

October 20, 2011

Oct. 20 (Bloomberg) -- Diesel fuel in the Midwest strengthened amid speculation that refinery maintenance may curtail production as farmers use more fuel to harvest crops.

CVR Energy Inc. planned to shut a crude unit and catalytic cracker starting early this month at the Coffeyville, Kansas, refinery, Steve Eames, a company spokesman, said in a Sept. 20 e-mail.

“There’s not lot of product coming off the Gulf Coast and it’s agriculture season,” said Steve Mosby, vice president of ADMO Energy LLC, a supply consultant in Kansas City, Missouri. “Diesel in the group is just tight.”

The premium for ultra-low-sulfur diesel in the Midwest, or Group 3, gained 1.38 cents to 7.13 cents a gallon versus futures traded on the New York Mercantile Exchange at 4:08 p.m., according to data compiled by Bloomberg. Prompt delivery rose 6.27 cents to $3.1014 a gallon.

The premium for conventional, 87-octane gasoline in the same region gained 0.87 cent to 5.25 cents.

--Editors: David Marino, Bill Banker

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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