Bloomberg News

Gulf Gasoline Drops After Motiva Said to Plan Crude Unit Start

June 08, 2012

Gulf Coast gasoline weakened as Motiva Enterprises was said to plan a June 10 start of the new 325,000-barrel-a-day crude unit at its Port Arthur, Texas, refinery.

The unit, shut June 3 to repair damage from a small fire, could near full rates within a day of the restart, said a person with knowledge of operations at the plant who declined to be identified because he isn’t authorized to speak for the company.

The discount for conventional, 87-octane gasoline in the Gulf Coast narrowed 2.5 cents to 11 cents a gallon versus futures traded on the New York Mercantile Exchange at 12:07 p.m. local time, according to data compiled by Bloomberg. Prompt delivery fell 6.97 cents to $2.5303 a gallon.

The Port Arthur crude unit, the largest of three at the plant, part of a $10 billion expansion, began operating in May. The plant is the largest in the U.S.

The premium for conventional gasoline to be blended with ethanol, or CBOB, in New York rose 3.35 cents to 4.6 cents a gallon versus futures. It’s the highest level since April 4.

The differential for reformulated gasoline in New York Harbor, or RBOB, rose 0.75 cents to 9.88 cents a gallon.

Petroplus Holdings AG’s Coryton refinery in the U.K., began a shutdown process on June 6 and will be out of production by June 12 or June 13, Russ Ball, an official at Unite, the U.K.’s largest labor union, said by phone.

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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