Chicago Gasoline Tumbles Against Futures on Refinery Selling

Chicago gasoline weakened as refiners sold fuel in the spot market, a regional supply consultant said.

Conventional gasoline to be blended with ethanol, or CBOB, in Chicago tumbled 11.5 cents to a discount of 15 cents a gallon against futures traded on the New York Mercantile Exchange at 4:22 p.m. East Coast time, according to data compiled by Bloomberg.

“It’s refinery selling,” Steve Mosby, vice president of supply consultant ADMO Energy LLC in Kansas City, Missouri, said in a telephone interview. “I’m going to say it’s BP out there. They’ve had the biggest chainsaw lately.”

BP Plc’s 420,000-barrel-a-day Whiting refinery in Indiana fixed a pump malfunction that prevented it from delivering products on the West Shore pipeline near Chicago, Kevin Good, a Houston-based spokesman for the line’s operator Buckeye Partners LP, said yesterday. Husky Energy Inc. also restored operations at the Lima refinery in Ohio over the weekend following repairs.

BP’s 160,000-barrel-a-day Toledo refinery in Ohio flared sulfur dioxide May 1 after a relief valve lifted on the EPA wash tower, a notice to the Toledo Division of Environmental Quality showed. Operations were “readjusted” to stop the release, the filing shows.

Motor gasoline inventories in the Midwest, known as the Padd 2 region, dropped 3.2 percent to 50.1 million barrels in the week ended April 27, the Energy Department said yesterday. That’s 5.2 percent higher than stocks at this time a year ago, the agency said.

Gulf Coast

Conventional, 87-octane gasoline in the Gulf Coast slipped 1.37 cents to a discount of 20 cents a gallon against futures at 4:14 p.m. in New York.

Delek US Holdings Inc. cut runs at the El Dorado refinery in Arkansas to 69 percent of capacity after Exxon Mobil Corp. shut the North Shore pipeline, which supplies crude to the plant. Refinery throughput has been reduced to 55,000 barrels a day, Mark Cox, the company’s chief financial officer, said in a conference call with investors.

Valero Energy Corp. is keeping a fluid catalytic cracker shut at the Meraux refinery in Louisiana as it determines whether to run only the cracker at the nearby St. Charles refinery instead, Bill Klesse, the company’s chief executive officer, said during an interview in San Antonio.

BP planned to restore operations at an ultracracker at the Texas City refinery today, the company said in a filing with the Texas Commission on Environmental Quality yesterday.

Conventional, 87-octane gasoline in New York Harbor slipped 1.25 cents to a discount of 9.5 cents a gallon against futures.

The same fuel in the Midwest, or Group 3, fell 0.25 cent to 14.75 cents a gallon below futures.

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