U.S. Gulf Coast gasoline strengthened, rising from a two-week low, as Valero Energy Corp. (VLO:US) and Flint Hills Resources LLC shut units or were conducting maintenance at refineries in Corpus Christi, Texas.
Valero is carrying out planned work on an oleflex unit at the Corpus Christi West refinery, while Flint Hills reported flaring associated with a shut unit at its Corpus Christi East plant, the companies said today. With the ability to process a combined 515,000 barrels a day, the plants make up almost 6 percent of U.S. Gulf Coast capacity.
Reformulated gasoline on the Gulf gained 2 cents to trade 13.25 cents a gallon below futures on the New York Mercantile Exchange at 4:04 p.m. The differential was 15.25 cents on Jan. 11, the widest gap since Dec. 27. The same fuel for prompt delivery gained 3.46 cents to $2.6216 a gallon.
Shut units and maintenance on the Gulf Coast may help reduce the region’s inventories of motor fuel, which rose 1.15 million barrels to 81.4 million last week, according to the Energy Information Administration, the statistical arm of the Energy Department.
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