U.S. Gulf Coast gasoline rallied for a second day, climbing from the lowest level since April 3, while crack spreads slumped.
Conventional, 85-octane gasoline, or CBOB, on the Gulf Coast strengthened 4.13 cents to 22.63 cents a gallon below futures on the New York Mercantile Exchange at 4:06 p.m. Reformulated gasoline, or RBOB, gained 0.55 cent to 7.95 cents a gallon under futures.
The differentials widened while the 3-2-1 crack spread, a rough measure of refining margins for gasoline and diesel fuel based on West Texas Intermediate oil in Cushing, Oklahoma, slipped 40 cents to $12.21 a barrel. The same spread for Light Louisiana Sweet oil dropped 25 cents to $5.11 a barrel.
A hydrocracker returned to normal rates at Valero Energy Corp.’s Port Arthur, Texas, refinery following a brief shutdown over the weekend, the company said.
Alon Energy USA Inc. had an electrical malfunction at its Big Spring refinery, also in Texas, last week. An e-mail to spokesman Blake Lewis was not immediately returned today.
Stockpiles of motor fuel on the Gulf Coast, known as PADD 3, gained 589,000 barrels to 76.1 million barrels in the week ended June 21, according to U.S. Energy Information Administration data.