Gasoline gained on concerns that reduced refining capacity will limit supplies as the summer demand season approaches.
Futures rose as much as 1.3 percent after ConocoPhillips (COP) shut a fluid catalytic cracker at its Bayway refinery in New Jersey for repairs over the weekend. Hess Corp. may also shut a catalytic cracker at the Port Reading refinery for about three weeks and is assessing repairs to the unit, the company said Jan. 25.
“There are concerns on what’s going to happen with all these refineries shutting down as we get closer to the summer driving season,” said Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut. “It’s making the market nervous about supplies going forward.”
Gasoline for February delivery rose 2.78 cents, or 1 percent, to $2.8985 a gallon at 9:52 a.m. on the New York Mercantile Exchange.
February-delivery heating oil rose 4.51 cents, or 1.5 percent, to $3.0969 a gallon. Prices touched $3.104, the highest intraday level since Jan. 12.
The unplanned outage at Bayway followed Hovensa LLC’s plans to shut its 350,000-barrel-a-day St. Croix plant in the U.S. Virgin Islands next month. Two unprofitable Pennsylvania refineries have already been closed.
Regular gasoline at the pump, averaged nationwide, rose 1.4 cents to $3.443 yesterday, according to AAA data. Prices were 11 percent higher than a year earlier.
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