Gulf Gasoline Strengthens on Valero, Motiva Trouble Reports
Gulf Coast gasoline strengthened for a second day after Valero Energy Corp. (VLO)’s Port Arthur refinery had a power failure and compressors tripped offline at Motiva Enterprises LLC’s plant in the Texas city.
There wasn’t a material impact to production from the 10- minute outage at the Valero refinery, Bill Day, a company spokesman based in San Antonio, said in an e-mail. Motiva’s compressors tripped because of high pressure, according to a filing with state regulators.
The discount for conventional, 87-octane gasoline in the Gulf Coast narrowed 0.55 cent to 6.5 cents a gallon versus futures traded on the New York Mercantile Exchange at 2 p.m., according to data compiled by Bloomberg. Prompt delivery rose 7.04 cents to $2.5635 a gallon.
The same fuel in Chicago weakened 2.5 cents to a discount of 13 cents a gallon versus futures. It’s the lowest level since July 22.
U.S. gasoline inventories may have risen 1.2 million barrels last week, to 216.2 million, according to the median estimate of 12 analysts surveyed by Bloomberg News. The Energy Department reports fuel inventories tomorrow at 10:30 a.m.
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