Bloomberg News

Gulf Gasoline at Six-Month Low With Stockpiles at Seasonal High

October 23, 2013

Gasoline on the U.S. Gulf Coast fell to a six-month low with refinery maintenance nearing an end and supplies of the fuel at a seasonal high.

Conventional, 87-octane gasoline in the Gulf dropped for the seventh day in a row, declining 2.25 cents to 20.75 cents a gallon below futures on the New York Mercantile Exchange at 1:46 p.m., the lowest level since April 5, according to data compiled by Bloomberg. The conventional CBOB grade fell 1 cent to 21.5 cents below futures.

Gasoline stockpiles in the Gulf Coast region, known as PADD 3, dropped 2.23 million barrels to 74.2 million in the week ended Oct. 18, according to Energy Information Administration data. That’s the highest level for the time of year in data going back to 1990.

Differentials weakened as the peak of fall maintenance neared, which may increase production, adding to supplies in the region. Refineries including Phillips 66 (PSX:US)’s Lake Charles, Louisiana, and Borger, Texas, plants and Exxon Mobil Corp (XOM:US)’s Baton Rouge, Louisiana, site are concluding work that included a fluid catalytic cracker and an crude unit.

Midcontinent 87-octane gasoline fell 1 cent to 24.5 cents a gallon below futures, the lowest level since March 14, according to data compiled by Bloomberg, and the lowest seasonal level on record. In Chicago, 87-octane gasoline fell 4.25 cents to 23.75 cents a gallon below futures.

The 3-2-1 crack spread on the Gulf Coast, a rough measure of refining margins for gasoline and diesel based on West Texas Intermediate oil in Cushing, Oklahoma, narrowed $1.16 to $9.70 a barrel. The same spread based on Light Louisiana Sweet oil, the Gulf Coast benchmark, likewise dropped $1.16 to $7.20 a barrel, according to data compiled by Bloomberg.

Ultra-low-sulfur diesel on the Gulf was unchanged at a discount of 5.88 cents to ULSD futures. The same fuel gained 0.5 cent to a discount of 8.38 cents a gallon in the midcontinent and fell 0.5 cent to a discount of 9.5 cents in Chicago.

Reformulated, 84-octane gasoline, or RBOB, in New York Harbor gained 0.12 cent to 0.75 cent a gallon above futures.

To contact the reporter on this story: Eliot Caroom in New York at ecaroom@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)
    • $86.29 USD
    • -0.38
    • -0.44%
  • XOM
    (Exxon Mobil Corp)
    • $99.43 USD
    • -0.21
    • -0.21%
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