Gulf Coast Gasoline Gains as Refinery Work May Reduce Supply

U.S. Gulf Coast gasoline climbed to a one-month high on the spot market as maintenance and upsets at area refineries threatened to reduce fuel production.

Conventional, 85-octane gasoline blendstock, or CBOB, on the Gulf strengthened 0.5 cent to 12.25 cents a gallon below futures on the New York Mercantile Exchange at 4:03 p.m., the narrowest gap since Aug. 29. Conventional, 87-octane grade added 0.75 cent to 11.25 cents a gallon below futures.

The discounts narrowed as Phillips 66 (PSX) carried out maintenance at the 239,000-barrel-a-day Lake Charles refinery in Louisiana. The Lake Charles plant transports fuel by truck, rail, barge and pipeline to the southeastern and eastern U.S., according to the company’s website.

The 3-2-1 crack spread on the Gulf Coast, a rough measure of refining margins based on West Texas Intermediate oil in Cushing, Oklahoma, dropped 45 cents to $8.84 a barrel, a second consecutive decline. The same spread based on Light Louisiana Sweet oil slipped $1.10 to $5.74 a barrel, the lowest level in a week, according to data compiled by Bloomberg.

Ultra-low-sulfur diesel fuel on the Gulf Coast weakened by 0.37 cent to 4.25 cents a gallon below ULSD futures on the Nymex. The same fuel in New York Harbor was unchanged at 0.13 cent above futures.

California-blend, or Carbob, gasoline in San Francisco strengthened 1.5 cents to a premium of 5 cents a gallon to futures at 4:06 p.m. New York time.

Carbob in Los Angeles strengthened by 0.75 cent to a premium of 10.25 cents. Conventional, 84-octane gasoline in Portland, Oregon, weakened by 1 cent to a premium of 8.5 cents.

California-blend diesel in San Francisco strengthened by 1.5 cents to a a discount of 1 cent a gallon to Nymex futures. The fuel in Los Angeles weakened by 0.25 cent to a premium of 1 cent. Low-sulfur diesel in Portland was unchanged at a discount of 2 cents.

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 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.