Gulf Coast gasoline strengthened as U.S. inventories were expected to drop and a fire at a refinery in Mexico may add to exports from the region.
Gasoline supplies probably fell 2 million barrels to 204.1 million, according to the median estimate of 10 analysts polled by Bloomberg. Inventories are above the five-year average for this time of year, data compiled by Bloomberg showed. The U.S. Energy Department is scheduled to release the data tomorrow at 10:30 a.m. in Washington.
Conventional, 87-octane gasoline in the Gulf Coast narrowed its discount 0.25 cent to 10.25 cents a gallon versus futures traded on the New York Mercantile Exchange at 4:01 p.m., according to data compiled by Bloomberg. Prompt delivery gained 1.6 cents to $2.9017.
A fire at Petroleos Mexicanos’ Madero refinery in Mexico’s northern state of Tamaulipas may draw more U.S. fuel exports. Production from the 190,000-barrel-a-day plant is reduced by about 10 percent, said a press official who declined to be identified citing the Mexico City-based company’s policy.
Pemex is evaluating the damage to a hydrodesulfurization unit that caught fire last night and a timeline for the repairs is expected to be ready later today, the person said.
Pemex is the world’s fourth-largest crude producing company and Mexico is the biggest importer of U.S. petroleum products. The nation imported 514,000 barrels a day of fuel in May, accounting for 16 percent of U.S. fuel exports, according to the U.S. Energy Department.