U.S. Gulf Coast gasoline weakened for a third day, falling to an 11-day low against futures, as operations returned to normal at Texas refineries owned by Valero Energy Corp. (VLO:US) and Motiva Enterprises LLC.
Valero’s Port Arthur plant experienced no material impact to operations after a system upset resulted in flaring yesterday, according to Bill Day, a San Antonio-based company spokesman. The refinery has a capacity of 310,000 barrels a day.
Motiva’s 600,000-barrel-a-day refinery in Port Arthur, the biggest in the U.S., began restarting units last week after an area power failure led to a shutdown of the plant on April 14.
Conventional, 85-octane gasoline on the Gulf slid 3.75 cents to 20.25 cents a gallon below futures on the New York Mercantile Exchange at 11:59 a.m., the lowest level since April 12, according to data compiled by Bloomberg. CBOB’s discount has increased 7.25 cents in two days, the biggest widening since February.
Ultra-low-sulfur diesel was unchanged at 2 cents below Nymex futures.
The 3-2-1 crack spread on the Gulf, a rough measure of refinery margins for gasoline and diesel fuel based on West Texas Intermediate in Cushing, Oklahoma, retreated $1.60 to $23.19 a barrel, a second consecutive decline. The same spread for Light Louisiana Sweet also slid for a second day, falling $1.05 to $10.94 a barrel.
To contact the reporter on this story: Christine Harvey in New York at firstname.lastname@example.org
To contact the editor responsible for this story: Dan Stets at email@example.com