New York gasoline rose as European margins to produce the fuel strengthened to a 10-month high and ConocoPhillips (COP) Bayway refinery in New Jersey reported an upset.
Higher profits for the fuel in Europe may decrease exports to the U.S. Conoco reported a “cat plant” upset at the 238,000-barrel-a-day Bayway plant, according to a state regulatory filing.
The discount for reformulated, 87-octane gasoline, or RBOB, in New York Harbor (MOSN87PM), narrowed by 0.75 cent to 20.25 cents a gallon versus futures traded on the New York Mercantile Exchange at 8:58 a.m., according to data compiled by Bloomberg. Prompt delivery gained 2.83 cents to $3.2035 a gallon.
The U.S. East Coast will have lost almost half of its refining capacity in six months by July, according to data compiled by Bloomberg based on Energy Department statistics.
Petroplus Holdings AG has also idled refineries in Europe, tightening capacity in the region.
Royal Dutch Shell Plc (RDSA) said production at its Pernis oil refinery in Rotterdam, Europe’s largest facility, wasn’t affected by a fire that broke out earlier today.
The front-month crack spread to produce gasoline in Northwest Europe from Brent oil widened to $14.87 a barrel, the highest level since May, according to data from PVM Oil Associates Ltd.
To contact the reporter on this story: Paul Burkhardt in New York at firstname.lastname@example.org
To contact the editor responsible for this story: Dan Stets at email@example.com