Spot gasoline on the U.S. Gulf Coast fell to the lowest level against futures in seven weeks after the Energy Department said regional inventories jumped 2.3 percent last week.
Gasoline supplies dropped in every U.S. region last week except for the Gulf Coast, known as Padd 3, where stocks grew by 1.63 million barrels to 71.6 million, the report showed. Refinery utilization in the region climbed 0.3 percentage points to 84.3 percent in the week ended April 27.
The discount for conventional, 87-octane gasoline in the Gulf Coast widened 0.75 cent to 18.63 cents a gallon to futures traded on the New York Mercantile Exchange at 4:08 p.m. East Coast time, according to data compiled by Bloomberg. That’s the lowest level for the fuel in the Gulf Coast since March 12.
Valero Energy Corp. (VLO:US) was starting units at the 135,000- barrel-a-day Meraux refinery in Louisiana after a “power blip” today, Bill Day, a spokesman at the company’s headquarters in San Antonio, said in an e-mail. The incident should have “no material impact” on production, he said.
Exxon Mobil Corp. (XOM:US) was depressuring a hydrocracker at the 584,000-barrel-a-day Baytown refinery in Texas after the unit “tripped,” a filing with the U.S. National Response Center showed. The incident should have “minimal impact” on production, Connie Tilton, an Exxon spokeswoman at the refinery, said in an e-mail.
The same fuel in New York Harbor weakened 2.75 cents to 8.25 cents a gallon below gasoline futures at 3:58 p.m. East Coast time.
Unleaded gasoline in the Midwest, or Group 3, was unchanged at a discount of 14.75 cents a gallon versus futures.
Conventional gasoline to be blended with ethanol, or CBOB, in Chicago fell 1 cent to 3.5 cents a gallon below futures.
BP Plc (BP/)’s 160,000-barrel-a-day Toledo refinery in Ohio flared sulfur dioxide yesterday after a relief valve lifted on the EPA wash tower, a notice to the Toledo Division of Environmental Quality showed.
BP’s 420,000-barrel-a-day Whiting refinery in Indiana fixed a pump malfunction that prevented it from delivering products on the West Shore pipeline near Chicago, said Kevin Good, a Houston-based spokesman for Buckeye Partners LP (BPL:US), which operates the line.
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