Bloomberg News

Gulf Coast Gasoline Weakens After Phillips 66 Reports Restart

October 16, 2013

Spot gasoline discounts on the U.S. Gulf Coast widened against futures for the second straight day after Phillips 66 (PSX:US) reported a unit startup at the Borger refinery in Texas.

The 146,000-barrel-a-day plant was preparing to begin starting the Unit 40 fluid catalytic cracker, the company said in a notice to the Texas Commission on Environmental Quality yesterday. Fluid Catalytic crackers process vacuum gasoil into gasoline and other lighter products.

Conventional, 87-octane gasoline dropped 1 cent against futures on the New York Mercantile Exchange to a discount of 10.25 cents a gallon at 4:05 p.m., according to data compiled by Bloomberg. Conventional CBOB gasoline weakened 1.75 cents to 11.25 cents a gallon below futures.

Marathon Petroleum Corp. (MPC:US)’s 451,000-barrel-a-day Galveston Bay refinery reported an Oct. 14 valve leak associated with the No. 3 ultraformer, a notice to state regulators shows. Jamal Kheiry, a spokesman for Marathon in Findlay, Ohio, declined by e-mail yesterday to comment on the upset.

The 3-2-1 crack spread on the Gulf Coast, a rough measure of refining margins for gasoline and diesel fuel based on West Texas Intermediate oil in Cushing, Oklahoma, narrowed 7 cents to $11.93 a barrel. Cracks based on Light Louisiana Sweet oil, the Gulf Coast benchmark, widened 53 cents to $10.78 a barrel.

Ultra-low-sulfur diesel on the Gulf Coast spot market was unchanged against ULSD futures on the Nymex at a discount of 6 cents a gallon.

To contact the reporter on this story: Lynn Doan in San Francisco at ldoan6@bloomberg.net

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


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Companies Mentioned

  • PSX
    (Phillips 66)
    • $87.02 USD
    • 0.41
    • 0.47%
  • MPC
    (Marathon Petroleum Corp)
    • $91.01 USD
    • 0.23
    • 0.25%
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