Bloomberg News

Gulf Coast Gasoline Gains After BP Adjustments, Pasadena Fire

December 12, 2011

Dec. 12 (Bloomberg) -- Gulf Coast gasoline rose after BP Plc adjusted equipment associated with an ultracracker in Texas City, Texas, and Petroleo Brasileiro SA’s Pasadena refinery shut a coker following a fire.

BP lowered system pressure on the gasoline-making unit to make changes Dec. 10, according to a filing with the Texas Commission on Environmental Quality. The coker fire broke out the same day at the Pasadena plant near Houston and was extinguished, the company said in a statement.

The discount for conventional, 87-octane gasoline in the Gulf Coast narrowed 0.58 cent to 7.05 cents a gallon versus futures traded on the New York Mercantile Exchange at 4:10 p.m., according to data compiled by Bloomberg. Prompt delivery fell 2.68 cents to $2.4931 a gallon.

The discount versus heating oil futures for ultra-low- sulfur diesel at the same hub narrowed 2.55 cents to 4.7 cents a gallon.

Alon USA Energy Inc. flared sulfur dioxide from the Big Spring Refinery in Texas after a valve failed, according to a Dec. 11 filing to state regulators.

The emissions began at 2:30 a.m. local time and ended by 9 a.m., and the unit was stabilized, the state filing showed.

The Big Spring refinery can process 70,000 barrels a day, according to data compiled by Bloomberg.

California-blend gasoline in San Francisco weakened 0.75 cent to a premium of 0.25 cent a gallon versus futures.

The premium for the fuel in Los Angeles slipped 0.75 cent to 5.75 cents. It strengthened Dec. 9 as Kinder Morgan started scheduling for the third cycle on the West pipeline, which carries refined products from Southern California into Arizona.

--Editors: Charlotte Porter, Dan Stets

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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