Bloomberg News

Chicago Gas at 7-Week High on Equipment, Enbridge Line Shutdowns

July 30, 2012

Chicago gasoline rose to the highest level since June as Phillips 66 and Citgo Petroleum Inc. shut equipment at Illinois refineries and Enbridge Inc. (ENB) closed a crude-oil line following a leak.

Phillips 66’s 356,000-barrel-a-day Wood River refinery closed a compressor, while a unit of Citgo’s Lemont plant was shut because of an upset, according to state filings. Enbridge halted transmission on Line 14 on July 27 after the pipe spilled an estimated 1,200 barrels of oil. The line carries crude to Midwestern refineries.

The premium for conventional, 87-octane gasoline in Chicago widened 10.5 cents to 23.5 cents a gallon versus futures traded on the New York Mercantile Exchange at 2:41 p.m., the highest level since June 13, according to data compiled by Bloomberg.

Ultra-low sulfur diesel in Chicago gained 3 cents to a premium of 14 cents a gallon versus heating oil futures traded on the Nymex, the widest gap since June 13.

“Chicago basis is going crazy,” said Mark Anderle, a trader at Truman Arnold Cos. in Dallas. “You’ve got blips all over the place. Gulf is stronger as well.”

Reformulated 87-octane gasoline on the Gulf Coast added 1.25 cents to a premium of 1.75 cents a gallon at 4:17 p.m. in New York. Conventional 87-octane gasoline’s discount narrowed 2.5 cents to 7.25 cents.

Rich Johnson, a Phillips 66 spokesman based in Houston, declined to comment on Wood River.

The fluid catalytic cracking unit at the Lemont refinery is undergoing maintenance that should be finished within the week, Citgo said in an e-mailed statement.

Enbridge’s 317,600-barrel-a-day Line 14 delivers crude to refineries including Citgo’s Lemont.

BP Plc (BP/) kept a coker at its Whiting refinery in Indiana closed to repair damage from a fire last week. The unit at the 420,000-barrel-a-day plant, the largest serving in the Chicago market, may be shut for two weeks.

Cokers convert heavy refinery streams, such as vacuum bottoms, into light products like naphtha and heating oil.

To contact the reporter on this story: Christine Harvey in New York at charvey32@bloomberg.net

To contact the editor responsible for this story: Bill Banker at bbanker@bloomberg.net


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