U.S. Midwest gasoline strengthened to the highest level in two weeks after CVR Energy Inc. (CVI:US)’s Coffeyville, Kansas, refinery was said to need more time to carry out fluid catalytic cracker repairs.
Conventional, 87-octane gasoline in the Group 3 region gained 3 cents to 3.5 cents a gallon below futures on the New York Mercantile Exchange at 2:34 p.m., the strongest since Aug. 1. Group 3 includes areas from Tulsa, Oklahoma north to North Dakota and Minnesota.
The differential narrowed after a person familiar with operations at the Coffeyville refinery said repairs on an FCC would take 30 to 40 more days. The unit, which shut in late July after a failure on the flue gas coolers, was supposed to be started in the third week of August, according to the company.
The refinery has the capacity to process 120,000 barrels a day, according to data compiled by Bloomberg. Ultra-low-sulfur diesel fuel in Group 3 gained 0.38 cent to 3.13 cents a gallon above ULSD futures, the highest level since June 17.
The 3-2-1 crack spread in Group 3, a rough measure of refining margins for gasoline and diesel fuel based on West Texas Intermediate in Cushing, Oklahoma, gained 91 cents to $18.73 a barrel.
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