Gulf Diesel Gains as Venezuela Fire Spurs Export Speculation

U.S. Gulf Coast diesel rose for a fourth day as Petroleos de Venezuela SA worked to extinguish a tank fire at its El Palito refinery, raising speculation of greater demand for U.S. exports.

Venezuelan President Hugo Chavez said on state television yesterday that a second fire at the 130,000-barrel a day plant is under control. Before the flames erupted at the storage tanks, PDVSA was working to restart the main processing units at its Amuay refinery in western Venezuela after a gas leak caused an explosion on Aug. 25.

The premium for ultra-low-sulfur diesel in the Gulf Coast rose 2 cents to 5.75 cents a gallon versus heating oil futures traded on the New York Mercantile Exchange at 3:48 p.m. Prompt delivery rose 4.91 cents to $3.1837.

U.S. exports of refined products to Venezuela rose to 103,000 barrels a day in June, the highest level of any month on record, according to the Energy Department. Product exports to the South American country have averaged 48,500 barrels a day this year, up from the previous record of 32,000 a day in 2011.

To contact the reporter on this story: Joshua Falk in New York at

To contact the editor responsible for this story: Dan Stets at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.