Chicago Diesel Falls to 8-Month Low on Toledo Restart

Chicago diesel fuel tumbled to the lowest level in more than eight months after BP Plc (BP/) was said to restart units at its Toledo, Ohio, refinery.

Ultra-low-sulfur diesel in Chicago slipped 6 cents to 11.5 cents a gallon below futures at 4:19 p.m. on the New York Mercantile Exchange, the biggest discount since Jan. 23. Conventional, 85-octane gasoline in the region, or CBOB, dropped 1 cent to 6.5 cents below Nymex gasoline futures.

Differentials widened as BP was said to ramp up rates at its Toledo refinery after restarting a sulfur recovery complex. The plant had been running at reduced levels since Sept. 24, according to a person familiar with operations, who asked not to be identified because the information isn’t public.

The Toledo refinery, jointly owned by BP (BP) and Husky Energy Inc. (HSE), produces mostly gasoline, including low-sulfur fuels, according to the company’s website. The plant has the capacity to process about 160,000 barrels a day.

The 3-2-1 crack spread in Chicago, a rough measure of refining margins based on West Texas Intermediate oil in Cushing, Oklahoma, slipped $1.55 to $9 a barrel. The crack spread in New York, based on Brent oil in Europe, widened $1.27 to $7.15 a gallon, according to data compiled by Bloomberg.

Northeast Turnarounds

Spot gasoline in the U.S. Northeast strengthened to the highest in more than two weeks after Phillips 66 (PSX) said it was carrying out planned work at its 238,000-barrel-a-day Bayway plant, the largest single plant in the U.S. Northeast.

Conventional, 84-octane gasoline, or RBOB, in New York Harbor added 2.13 cents to a premium of 1.13 cents a gallon versus Nymex futures at 3:53 p.m., the strongest level since Sept. 13. The conventional, 83.5-octane grade known as CBOB gained 1.51 cents to 0.38 cent above Nymex futures.

PBF Energy Inc. (PBF) was expected to carry out maintenance on a coker and two sulfur units in Delaware City, Delaware, starting this week. Michael Karlovich, a spokesman for PBF in Parsippany, New Jersey, declined to comment on operations.

The Delaware City site, on the Delaware River, processes a diverse slate of heavy crudes and distributes clean products, according to the company’s website. The plant has a capacity of about 182,2000 barrels a day, 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

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