U.S. Gulf Coast gasoline strengthened to the highest level in two weeks as regional refinery outages reduced output.
Conventional, 85-octane gasoline blendstock, or CBOB, on the Gulf Coast gained 1.88 cents to 13.25 cents a gallon below futures on the New York Mercantile Exchange at 11:56 a.m., the narrowest discount since Sept. 13. Conventional, 87-octane fuel added 1.5 cents to a discount of 12.5 cents, also a two-week high.
Differentials strengthened as Motiva Enterprises LLC and Royal Dutch Shell Plc (RDS/A) continued the restart process at the Port Arthur and Deer Park refineries. Exxon Mobil Corp. (XOM)’s Baton Rouge site had a unit shut for maintenance, while Citgo Petroleum Corp. prepared to restart units after a turnaround at the Corpus Christi plant in Texas.
The four plants have a combined capacity of 1.61 million barrels a day, according to data compiled by Bloomberg.
The 3-2-1 crack spread on the Gulf Coast, a rough measure of refining margins for gasoline and diesel based on West Texas Intermediate in Cushing, Oklahoma, slipped 17 cents to $9.31 a barrel. The same spread based on Light Louisiana Sweet oil dropped the same amount to $6.91 a barrel, according to data compiled by Bloomberg.
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