Bloomberg News

Chicago Diesel Gains for Second Day After Lemont Flaring

May 10, 2012

Chicago diesel strengthened for a second day after Citgo Petroleum Corp. experienced issues at its Lemont, Illinois, refinery.

The plant released an unknown amount of natural gas and propane from a flare after a “power blip” at Lemont, a filing May 8 with the U.S. National Response Center showed.

Prices also dropped because BP Plc (BP/) sold the fuel on May 4, Steve Mosby, vice president of supply consultant ADMO Energy LLC in Kansas City, Missouri, said in a telephone interview.

The discount for ultra-low-sulfur diesel in Chicago versus heating oil traded on the New York Mercantile Exchange narrowed 5.5 cents to 4 cents a gallon at 12:44 p.m., according to data compiled by Bloomberg. Prompt delivery rose 3.44 cents to $2.9935 a gallon.

Sunoco Inc. (SUN:US) won’t have an estimate for the restart of a 200,000-barrel-a-day crude unit at its Philadelphia refinery until damage from a fire yesterday is inspected, according to a person familiar with plant operations.

The discount for conventional gasoline to be blended with ethanol, or CBOB, in New York Harbor narrowed 3.5 cents to 3.5 cents a gallon.

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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