Gulf Gasoline Weakens as Valero, Phillips 66 Finish Work

Gasoline weakened for a second day on the U.S. Gulf Coast after Valero (VLO) Energy Corp. and Phillips 66 (PSX) completed maintenance at two refineries in Texas.

Valero returned a crude unit to service after five weeks of planned maintenance at the McKee refinery in Sunray, Texas, while Phillips 66 completed scheduled work at its Borger plant, the companies said today. The sites can process a combined 316,000 barrels a day, or 3.5 percent of U.S. Gulf Coast refining capacity, according to data compiled by Bloomberg.

Supplies of motor fuel on the Gulf, referred to as PADD 3, declined 168,000 barrels to 71.7 million in the week ended April 26, U.S. Energy Information Administration data show. Refinery utilization rates were 85.8 percent, up from 84.9 percent the week earlier.

Conventional, 85-octane gasoline, or CBOB, on the Gulf Coast fell 0.75 cent to 15 cents a gallon below futures on the New York Mercantile Exchange at 12:03 p.m. Ultra-low-sulfur diesel fuel was unchanged at discount of 3.75 cents a gallon to Nymex futures.

Borger maintenance may have included a fluid catalytic cracker and alkylation unit, according to people familiar with plant operations.

The 3-2-1 crack spread on the Gulf, a rough measure of refining margins for gasoline and diesel based on West Texas Intermediate in Cushing, Oklahoma, gained 68 cents to $21.24 a barrel. The same spread for Light Louisiana Sweet oil climbed 78 cents to to $10.04 a barrel.

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