Bloomberg News

Chicago Gasoline Gains After Conoco Wood River Equipment Failure

January 31, 2012

Jan. 31 (Bloomberg) -- Chicago gasoline strengthened after ConocoPhillips reported a compressor failure at the Wood River refinery in Illinois.

The plant began flaring sulfur dioxide as a result of the malfunction Jan. 26, according to a filing with the Illinois Emergency Management Institute. The company said in the filing that the unit will be repaired.

The discount for conventional, 87-octane gasoline in Chicago narrowed 3 cents to 19 cents a gallon versus futures traded on the New York Mercantile Exchange at 2:36 p.m., according to data compiled by Bloomberg. The fuel has increased five consecutive days. Prompt delivery rose 4.35 cents to $2.6962 a gallon.

Regular gasoline in the Midwest, or Group 3, strengthened 1.75 cents to a discount of 18 cents a gallon.

The same fuel in the Gulf Coast held at a discount to futures of 1.8 cents a gallon.

Valero Energy Corp. has postponed maintenance for February at its Houston refinery, Bill Day, a company spokesman, said in an e-mail. The turnaround will be rescheduled, he said.

--Editors: Charlotte Porter, 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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