Gulf Coast Gasoline Strengthens After Houston Refinery Upset

Gasoline in the Gulf Coast rose to the strongest level in two months after LyondellBasell Industries NV had an upset in a fluid catalytic cracker at its Houston refinery yesterday.

The plant flared gases after the upset at the 302,300-barrel-a-day plant, according to a filing with the Texas Commission on Environmental Quality. Western Refining Inc. began starting units at its El Paso refinery after a power outage July 26, a separate filing showed.

The discount for conventional, 87-octane gasoline in the Gulf Coast versus New York Mercantile Exchange futures narrowed 0.62 cent to 6.88 cents a gallon at 1:48 p.m., according to data compiled by Bloomberg. That’s the smallest gap since May 13. Prompt delivery sank 2.01 cents to $2.988 a gallon.

The premium over heating oil futures for for ultra-low-sulfur diesel, or ULSD, at the hub rose 0.4 cent to 3.5 cents a gallon.

Several units shut after Western’s 128,000-barrel-a-day refinery in El Paso lost power July 26, the company said in the filing.

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