Gasoline strengthened in the Gulf Coast, reversing a two-day decline, after Exxon Mobil Corp. (XOM:US) shut a unit at its Baytown, Texas, oil refinery and Colonial Pipeline Co. shut two lines that carry the fuel.
Exxon shut a diesel hydrotreater after a fire at Baytown, the largest U.S. oil refinery. Colonial lines 19 and 20, which move products from Atlanta to Nashville, were shut yesterday after an odor was detected. Line 19 may have leaked 500 gallons of gasoline, said Steve Baker, a spokesman for the Alpharetta, Georgia-based company.
The premium for reformulated, 87-octane gasoline in the Gulf Coast increased 1 cent to 6.25 cents versus futures traded on the New York Mercantile Exchange at 12:02 p.m., according to data compiled by Bloomberg. Prompt delivery gained 9.81 cents to $2.9501 a gallon.
Exxon’s 584,000-barrel-a-day Baytown plant accounts for almost 7 percent of Gulf Coast production, according to data compiled by Bloomberg. Colonial, operator of the largest conduit between Gulf Coast oil refiners and East Coast makers, delivers an average 100 million gallons a day of refined products to shipping terminals in 13 states.
Refinery maintenance began this week at Citgo Petroleum Corp.’s East and West plants in Corpus Christi and at a shut section of a crude unit at Motiva Enterprises LLC’s Convent, Louisiana, refinery. The Citgo and Motiva facilities account for a combined capacity of 420,000 barrels per day.
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