U.S. Gulf Coast gasoline strengthened to the narrowest discount to futures in three weeks after Marathon Petroleum Corp. (MPC:US) reported a unit upset at its Galveston Bay refinery in Texas.
The differential for reformulated, 84-octane gasoline, or RBOB, on the Gulf Coast narrowed 4.75 cents to 1.25 cents a gallon below New York Mercantile Exchange futures at 2:40 p.m., the smallest gap since July 11, according to data compiled by Bloomberg. Conventional, 85-octane gasoline, or CBOB, weakened 2.5 cent to 20.25 cents a gallon below futures.
Marathon reported an upset on the No. 3 fluid catalytic cracker at the 451,000-barrel-a-day Galveston Bay refinery because of a boiler trip yesterday, a filing with the Texas Commission on Environmental Quality showed. A No. 1 FCC had an ammonia leak, according to a separate report.
The 3-2-1 crack spread on the Gulf Coast, a rough measure of refining margins based on West Texas Intermediate oil on Cushing, Oklahoma, fell $2.05 to $14.16 a barrel, a second consecutive decline, according to data compiled by Bloomberg. The same spread for Light Louisiana Sweet oil slipped $1.15 to $9.36 a barrel.
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