U.S. Gulf Coast gasoline strengthened after a fire at unit at Alon USA Energy Inc. (ALJ:US)’s Big Spring, Texas, refinery.
Yesterday’s fire was caused by a leak from the bottom of a vacuum tower, which was in the process of being closed for planned work, the company said in an e-mail today. It was extinguished quickly and early indications were that the damage was minor, Alon said.
The Big Spring refinery has the capacity to process as much as 70,000 barrels a day, data compiled by Bloomberg show. The work may draw from Gulf Coast gasoline supplies, which were 82.1 million barrels as of Jan. 25, according to Energy Information Administration data.
Conventional, 87-octane gasoline strengthened 1 cent to trade at a discount of 19.5 cents versus futures on the New York Mercantile Exchange at noon. Reformulated, 84-octane gasoline, or RBOB, gained 1 cent to 15.5 cents below futures.
Ultra-low-sulfur diesel on the Gulf Coast weakened 0.67 cent to 0.38 cent above heating oil futures, according to data compiled by Bloomberg. The same fuel fell 0.37 cent to 6.38 cents above futures in New York Harbor, where 84-octane RBOB held at parity for a second day.
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