Bloomberg News

N.Y. Gasoline Strengthens as U.K. Refinery Expected to Shut

May 29, 2012

New York gasoline strengthened on speculation that Petroplus Holdings AG will shut its 175,000- barrel-a-day Coryton refinery in the U.K., reducing production capacity in the Atlantic Basin.

Crude supplies will run out at the plant in the week of June 4, Steven Pearson, a partner at PricewaterhouseCoopers LLP, Petroplus Holdings AG’s U.K. administrator, said yesterday. Europe exported 533,000 barrels a day of gasoline to the U.S. East Coast in the week ended May 18, according to the Energy Department.

Conventional gasoline to be blended with ethanol, or CBOB, in New York Harbor narrowed 1.75 cents to a discount of 7.5 cents a gallon versus futures traded on the New York Mercantile Exchange at 3:18 p.m., according to data compiled by Bloomberg. Prompt delivery gained 3.11 cents to $2.8315 a gallon.

The premium for reformulated, 87-octane gasoline at the hub held at 1.5 cents a gallon. Ultra-low-sulfur diesel gained 0.75 cent to a premium of 6.88 cents versus Nymex heating oil futures.

Petroplus, once Europe’s biggest independent refiner, filed for insolvency earlier this year.

Gasoline’s crack spread in Europe increased for a third day to $11.70 a barrel, data from PVM Oil Associates Ltd. showed. That’s the most since April 19.

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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