Gulf Gasoline Climbs as Valero McKee Refinery Repairs Compressor
Gulf Coast gasoline rose for a second day as Valero Energy Corp. (VLO)’s 170,000-barrel-a-day McKee refinery in Texas repaired a compressor at a hydrotreater.
The discount for conventional, 87-octane gasoline in the Gulf Coast narrowed 0.13 cent to 6 cents a gallon versus futures traded on the New York Mercantile Exchange in New York at 1:56 p.m., according to data compiled by Bloomberg. Prompt delivery fell 0.98 cent to $2.4074 a gallon.
San Antonio-based Valero released 700 pounds of sulfur dioxide at the McKee refinery during repairs to a compressor at a hydrotreater, which removes sulfur, metal and other impurities from refined products.
The same fuel in New York Harbor was unchanged at 1.75 cents above gasoline futures. The fuel in the Midwest, or Group 3, slipped 0.13 cent to a discount of 3.38 cents versus futures.
Conventional, 87-octane gasoline in Chicago widened 0.87 cent to a discount of 12.5 cents to futures, the lowest level since July 22.
“Without a gasoline buyer in the market, it’s just going to keep working its way lower,” Steve Mosby, vice president of ADMO Energy LLC, a supply consultant in Kansas City, Missouri, said in an telephone interview.
ConocoPhillips (COP) finished planned work at the 213,162-barrel- a-day Ponca City refinery in Oklahoma, Rich Johnson, a company spokesman, said in an e-mail. A crude unit, fluid catalytic cracker and alkylation unit were scheduled to shut during a 2011 turnaround, a person familiar with the work said June 23, 2010.
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