Gasoline Slips as Delta Trainer Plant Starts Cracker

Gasoline retreated after a report that an East Coast refinery restarted a production unit.

Futures fell from a seven-day high after Delta Air Lines Inc.’s Monroe Energy LLC subsidiary said it is operating the fluid catalytic cracker at its Trainer, Pennsylvania, refinery after unplanned repairs. The 185,000-barrel-a-day plant serves the Central Atlantic, which includes the New York Harbor delivery point for Nymex product futures.

“These refinery issues aren’t as bad as people thought they would be,” said Phil Flynn, senior market analyst at Price Futures Group in Chicago.

Gasoline for November delivery fell 2.83 cents, or 1.1 percent, to $2.6225 a gallon at 10:33 a.m. on the New York Mercantile Exchange. Trading volume was 35 percent below the 100-day average for the time of day.

The more actively traded December contract fell 2.64 cents, or 1 percent, to $2.5906 a gallon. November gasoline and diesel contracts will expire at the end of floor trading today.

The motor fuel’s crack spread versus West Texas Intermediate crude narrowed 90 cents to $12.43 a barrel. The fuel’s spread versus Brent slipped 44 cents to a 19-cent discount.

U.S. retail pump prices, averaged nationwide, were unchanged at $3.279 a gallon, Heathrow, Florida-based AAA said today on its website. Prices are 24.9 cents below a year ago.

Ultra-low-sulfur diesel for November delivery fell 1.63 cents, or 0.5 percent, to $2.9623 a gallon on trading volume that was 21 percent below the 100-day average. December futures dropped 1.82 cents, or 0.6 percent, to $2.9586.

ULSD’s premium over WTI declined 37 cents to $27.89 a barrel. The spread versus Brent widened 8 cents to $15.25.

To contact the reporter on this story: Barbara Powell in Dallas at bpowell4@bloomberg.net

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

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