Gulf Gasoline Weakens, New York Gains After Colonial Line Shut
Gasoline on the U.S. Gulf Coast weakened against futures for a second day after Colonial Pipeline Co. shut a segment of a line linking the region’s refineries to the Northeastern market.
Line 1 was shut for an hour after Colonial discovered leaked product yesterday, and operations downstream of Hebert, Texas, returned to normal today, Steve Baker, a spokesman based at the company’s headquarters in Alpharetta, Georgia, said by e-mail today. The pipeline isn’t accepting gasoline from Houston sources until it locates the leak and makes repairs, Baker said.
Conventional, 85-octane gasoline, or CBOB, on the Gulf Coast dropped 0.63 cent to a discount of 18.13 cents a gallon versus gasoline futures traded on the New York Mercantile Exchange at 12:08 p.m., data compiled by Bloomberg show. That’s the fuel’s weakest level in four days.
Conventional, 87-octane gasoline in New York Harbor climbed 0.12 cent to 8.63 cents a gallon below futures, a one-week high.
The Colonial segment shutdown may curtail shipments on the line, which can carry 1.5 million barrels a day of gasoline from the Houston area to Greensboro, North Carolina. Line 1 supplies fuel to states in the Southeast and connects at Greensboro to Line 3, which ends at Linden, New Jersey.
Ultra-low-sulfur diesel fuel on the Gulf Coast gained 0.5 cent against ULSD futures on the Nymex to a discount of 4.25 cents a gallon.
Motiva Enterprises LLC’s 255,000-barrel-a-day Convent refinery in Louisiana restored power after a bird landed on a transformer today, triggering a failure, Jean Kelly, a spokeswoman for the Louisiana Environmental Quality Department, said by e-mail from Baton Rouge.
LyondellBasell Industries NV (LYB)’s 302,300-barrel-a-day refinery in Texas reported flaring and emissions from a unit “due to an operational change,” the company said in a filing with state regulators.
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