Chicago Gasoline Jumps to Three-Month High on BP Pump Failure
Chicago gasoline advanced to the highest level against gasoline futures in more than three months after BP Plc (BP/)’s Whiting refinery had a pump failure that kept it from sending products over the West Shore pipeline.
A “pump issue” at the 420,000-barrel-a-day Whiting refinery prevented the company from delivering products to the West Shore pipeline near Chicago, said Marty White, right-of-way director for Buckeye Partners LP (BPL), which operates the line. The malfunction forced BP to make its deliveries from other sources, he said.
Conventional, 87-octane gasoline in Chicago jumped 8 cents to a discount of 0.5 cent a gallon against gasoline futures traded on the New York Mercantile Exchange at 4:52 p.m. New York time, according to data compiled by Bloomberg. That’s the highest level for the fuel in Chicago since Jan. 10.
The artery connecting the Whiting refinery to the West Shore line is expected to be reopened tomorrow, White said. Operations on the pipeline, which carries refined products from the Chicago area to Madison, Wisconsin, weren’t affected, he said.
The discount for the same fuel in the Gulf Coast region widened 0.87 cent to 17 cents versus gasoline futures, the lowest level for the fuel since March 15.
Valero Energy Corp. (VLO) started the crude and coker units at the 250,000-barrel-a-day St. Charles refinery after more than three months of work, Bill Day, a spokesman at the company’s headquarters in San Antonio, said in an e-mailed statement. The 310,000-barrel-a-day Port Arthur plant also finished catalyst work on the hydrocracker that began March 27, he said.
The discount for conventional gasoline in New York Harbor narrowed by 0.5 cent to 10.5 cents a gallon against gasoline futures.
Unleaded gasoline in the Midwest, or Group 3, was unchanged at a 19-cent discount to futures.
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