Bloomberg News

Chicago Gasoline Jumps After Exxon Joliet Plant Shuts Compressor

January 06, 2012

Jan. 6 (Bloomberg) -- Chicago gasoline strengthened for the first time in four days after Exxon Mobil Corp. shut a coker compressor at the Joliet oil refinery in Illinois.

Conventional, 87-octane gasoline in Chicago jumped 6.5 cents to trade at a 2.5-cent premium to gasoline futures on the New York Mercantile Exchange, the first premium in almost two months, according to data compiled by Bloomberg at 4:25 p.m. in New York. Prompt-delivery of the fuel in Chicago rose 8.01 cents to $2.7766 a gallon.

“There’s a lot of independents out in this area, and the minute they hear something go down, they’re buying,” Phil Flynn, an analyst with PFGBest in Chicago, said during a telephone interview. “It’s definitely a buy-first-and-ask- questions-later area.”

Irving, Texas-based Exxon shut a compressor at the 238,000- barrel-a-day Joliet refinery coker’s main fractionator two days ago, according to a filing with the National Response Center. The compressor was returned to service and production at the plant wasn’t affected, Tricia Simpson, a spokeswoman for the refinery, said in an e-mail today.

Ultra-low-sulfur diesel in Chicago was unchanged at a discount of 13.5 cents to heating oil futures.

The discount for conventional, 87-octane gasoline in the Gulf Coast widened 0.25 cent to 5 cents versus futures. The same fuel in New York fell 0.12 cent to a discount of 1.13 cents.

Conventional, 87-octane gasoline in the Midwest gained 1.25 cents to a 19.25-cent discount.

California-blend gasoline, known as Carbob, in Los Angeles strengthened for the first time in four days, by 0.12 cent to a premium of 12.25 cents against futures. The same fuel in San Francisco also climbed 0.12 cent to 8.25 cents above futures.

--Editors: David Marino, Margot Habiby

To contact the reporter on this story: Lynn Doan in San Francisco at ldoan6@bloomberg.net

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


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