Bloomberg News

Gulf Coast Gasoline Gains as Phillips 66 Refinery Makes Repairs

July 12, 2012

Gulf Coast gasoline strengthened to the highest level in a week after the Phillips 66 Sweeny refinery in Texas conducted repairs.

The 247,000-barrel-a-day plant reported emissions from a coker and fluid catalytic cracker No. 3, according to a filing with the Texas Commission on Environmental Quality. The maintenance event began yesterday at 6:22 a.m. local time and lasted until 11:22 a.m. today, the company said.

The premium for reformulated, 87-octane gasoline, or RBOB, in the Gulf Coast rose 1.25 cents to 2.75 cents a gallon versus futures traded on the New York Mercantile Exchange at 12:16 p.m., according to data compiled by Bloomberg. It was the highest level since July 5. Prompt delivery gained 1.73 cents to $2.8012 a gallon.

Inventories of RBOB at the hub increased 6.8 percent last week to 10 million barrels, government data showed. That’s 12 percent lower than a year earlier.

Rich Johnson, a Phillips 66 spokesman, didn’t immediately return an e-mail seeking comment on Sweeny plant operations.

Conventional, 87-octane gasoline in Chicago strengthened a second day, gaining 3 cents to a 10-cent discount.

Husky Energy Inc.’s Lima, Ohio, refinery plans to shut its selective catalytic reduction system for 10 days starting July 16 for maintenance, Dina Pierce, a spokeswoman for the Ohio Environmental Protection Agency, said yesterday.

The work involves the isocracker and ultraformer furnaces, Pierce, based in Columbus, Ohio, said in a telephone interview.

Production won’t be affected, Mel Duvall, a Calgary-based spokesman for Husky, said in an e-mailed statement the same day.

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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