Bloomberg News

U.S. Gulf Gasoline Falls a 3rd Day on Refinery Operations

April 23, 2013

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 charvey32@bloomberg.net

To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net


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Companies Mentioned

  • VLO
    (Valero Energy Corp)
    • $50.29 USD
    • 0.03
    • 0.06%
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