Bloomberg News

Gulf Coast Gasoline Strengthens After Motiva Shuts Crude Unit

June 04, 2012

Gulf Coast gasoline strengthened after Motiva Enterprises LLC stopped operating its new 330,000- barrel-a-day crude unit at the Port Arthur refinery in Texas.

One side of the unit was shut down and the other side was put on circulation, said two people, who declined to be identified because they aren’t authorized to speak for the company.

The discount for conventional, 87-octane gasoline in the Gulf Coast narrowed 1.67 cents to 9.58 cents a gallon versus futures traded on the New York Mercantile Exchange at 12:09 p.m., according to data compiled by Bloomberg. Prompt delivery rose 1.81 cents to $2.5624 a gallon.

The premium for ultra-low-sulfur diesel in the Gulf versus heating oil futures rose 0.75 cent to 3.38 cents a gallon. It is the highest level since May 15.

Emily Oberton, a Houston-based spokeswoman for the Motiva refinery, declined to comment.

Phillips 66 reported a process upset at its Borger, Texas, refinery on June 1, according to a June 2 filing with state regulators.

Valero Energy Corp. (VLO:US) flared gases at its Corpus Christi East refinery in Texas because of operating conditions within the plant, according to a message left on a community information line.

To contact the reporter on this story: Paul Burkhardt in New York at

To contact the editor responsible for this story: Dan Stets at

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