New York gasoline weakened as Delta Air Lines Inc. prepared to start the Trainer refinery in Pennsylvania.
Delta’s Monroe Energy LLC unit, which in April bought the 185,000-barrel-a-day plant from ConocoPhillips, expects production by the end of this month, Trebor Banstetter, a spokesman for the airline, said in a telephone interview. The refinery, closed since September 2011, recently took delivery of its first crude shipment, he said.
“I think the market feels they will begin processing crude at the end of September and has a wait-and-see attitude about when they get the downstream units on line and make finished products such as gasoline, jet fuel and diesel,” Andy Lipow, president of Lipow Oil Associates LLC in Houston, said in an electronic message.
Conventional gasoline to be blended with ethanol, or CBOB, in New York Harbor, dropped 1.25 cents to 13.75 cents a gallon over futures traded on the New York Mercantile Exchange at 8:58 a.m., according to data compiled by Bloomberg. Prompt delivery rose 0.06 cent to $3.1028 a gallon.
The premium for jet fuel at the hub versus Nymex heating oil futures fell 1.25 cents to 12 cents a gallon.
Paul Jacobson, Delta’s chief financial officer, said in a July 25 earnings call that the company was on target to begin restarting the plant in mid-September.
Delta has said it is spending $100 million to increase capacity at the plant from 185,000 barrels a day to 200,000, and to increase the yield of jet fuel from 14 percent to 32 percent.
Phillip 66 (PSX:US)’s 247,000-barrel-a-day Alliance refinery in Louisiana lost power early today, the second time in about a week the plant had an electrical failure.
“The utility provider expects to have power back to the refinery by late today,” Phillips said in a statement on its website.
The premium for conventional, 87-octane gasoline in the Gulf Coast rose 1 cent to 9.25 cents a gallon versus futures, the widest since Aug. 30.
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