Gulf Coast Gasoline Strengthens After Valero McKee Plant Issue

Gulf Coast gasoline rose after Valero Energy Corp. (VLO) reported emissions from a catalytic cracker and other equipment at the McKee refinery in Texas.

A unit trip and low temperatures on an electrostatic precipitator during a restart caused the emissions yesterday, according to a filing with the Texas Commission on Environmental Quality.

The discount for reformulated 87-octane gasoline, or RBOB, in the Gulf Coast (MOSGR87P) narrowed 1.5 cents to 23.5 cents a gallon versus futures traded on the New York Mercantile Exchange at 11:59 a.m., according to data compiled by Bloomberg. Prompt delivery rose 5.56 cents to $3.0355 a gallon.

The alkylation unit at the Citgo Corpus Christi East plant remains offline while the cause of a leak on March 5 is under investigation, according to the company.

To contact the reporter on this story: Paul Burkhardt in New York at pburkhardt@bloomberg.net

To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net

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