Diesel fuel in Chicago strengthened against New York futures after regional supplies fell to the lowest level in a year. A crude unit at BP Plc (BP/)’s Whiting refinery remains shut.
Distillate inventories in the Midwest fell by 751,000 barrels to 24.4 million in the week ended Nov. 23, the lowest since Nov. 18, 2011, according to Energy Department data. That’s the third consecutive weekly decline. Pipestill 12, the largest crude unit at Whiting, is in a planned turnaround, according to a person familiar with the situation.
Ultra-low-sulfur diesel gained 1.5 cents in Chicago to 14 cents a gallon over heating oil futures on the New York Mercantile Exchange at 12:41 p.m. That’s the widest gap since Nov. 19 and the third consecutive advance. The same fuel rose 0.25 cent to 2.75 cents a gallon over futures in the Mid- Continent region, or Group 3.
BP’s Whiting, the largest refinery in the Midwestern region known as PADD 2, can process 420,000 barrels a day. Pipestill 12 has a capacity of 235,000 barrels a day, according to the person, who isn’t authorized to speak on the issue and asked not to be identified.
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