Midwest Gasoline Climbs to Two-Week High on Coffeyville Repairs
U.S. Midwest gasoline strengthened to the highest level in two weeks after CVR Energy Inc. (CVI)’s Coffeyville, Kansas, refinery was said to need more time to carry out fluid catalytic cracker repairs.
Conventional, 87-octane gasoline in the Group 3 region gained 3 cents to 3.5 cents a gallon below futures on the New York Mercantile Exchange at 2:34 p.m., the strongest since Aug. 1. Group 3 includes areas from Tulsa, Oklahoma north to North Dakota and Minnesota.
The differential narrowed after a person familiar with operations at the Coffeyville refinery said repairs on an FCC would take 30 to 40 more days. The unit, which shut in late July after a failure on the flue gas coolers, was supposed to be started in the third week of August, according to the company.
The refinery has the capacity to process 120,000 barrels a day, according to data compiled by Bloomberg. Ultra-low-sulfur diesel fuel in Group 3 gained 0.38 cent to 3.13 cents a gallon above ULSD futures, the highest level since June 17.
The 3-2-1 crack spread in Group 3, a rough measure of refining margins for gasoline and diesel fuel based on West Texas Intermediate in Cushing, Oklahoma, gained 91 cents to $18.73 a barrel.
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