Chicago Fuels Rally Amid Marathon Catlettsburg Maintenance Plans

Chicago gasoline and diesel strengthened against futures on plans for Marathon Petroleum Corp. (MPC) to shut units at its Kentucky refinery.

Ultra-low-sulfur diesel gained 0.75 cent to 3.25 cents above futures on the New York Mercantile Exchange at 12:39 p.m., the strongest level since June 14. Conventional, 85-octane gasoline, or CBOB, moved to a 5-cent-a-gallon premium to futures from a 3-cent discount Sept. 13.

Two state filings showed that Marathon’s Catlettsburg, Kentucky, refinery was scheduled to shut a distillate desulfurization unit today, a hydrogen system tomorrow and a crude unit and several others on Sept. 23. A fluid catalytic cracker was expected to shut Sept. 15 for 45 days of work, a person familiar with the refinery’s operations said last week.

Jamal Kheiry, a spokesman for Marathon in Findlay, Ohio, declined to comment on the maintenance plans.

The Catlettsburg refinery, in northeastern Kentucky on the Big Sandy River, has a capacity of 240,000 barrels a day. The plant processes a wide range of both sweet and sour crude oils and distributes products by pipeline, barge, truck and rail, according to Marathon’s website.

The 3-2-1 crack spread in Chicago, a rough measure of refining margins based on West Texas Intermediate oil in Cushing, Oklahoma, dropped 57 cents to $12.01 a barrel, a third consecutive decline and lowest level since February 2012, according to data compiled by Bloomberg.

To contact the reporter on this story: Christine Harvey in New York at charvey32@bloomberg.net

To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net

Bloomberg reserves the right to edit or 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.