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.
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 email@example.com
To contact the editor responsible for this story: Dan Stets at firstname.lastname@example.org