July 19 (Bloomberg) -- Gasoline increased on speculation that refinery shutdowns in Canada and Philadelphia may crimp New York Harbor supply.
Futures rose 0.4 percent as Philadelphia Energy Solutions’ refinery idled an alkylation unit, which may result in lower fluid catalytic cracker rates. Korea National Oil Corp.’s Come by Chance refinery in Newfoundland shut units for repair. Irving Oil Corp., an exporter to the U.S. Northeast, shut down several units, the company said in a letter to neighbors.
“The alky at Philadelphia Energy Solutions is impacting gas production and, generally, you have to cut back the cat as well,” said Andy Lipow, president of Lipow Oil Associates LLC in Houston. “Irving has been a significant buyer of gasoline for resupply and the cat crackers and the crude units could be down for several weeks.”
August-delivery gasoline rose 1.36 cents to settle at $3.1234 a gallon on the New York Mercantile Exchange on trading volume that was 1 percent above the 100-day average at 5:16 p.m. Prices rose 0.2 percent this week and are up 13 percent in July, the best performer in the Standard & Poor’s GSCI index of 24 commodities.
Gasoline’s crack spread versus WTI widened 56 cents to $23.13 a barrel. The fuel’s premium to Brent gained $1.18 to $20.37.
Pump prices, averaged nationwide, rose an 11th consecutive time, gaining 0.3 cent to $3.67 a gallon, Heathrow, Florida-based AAA said today on its website. That’s the highest level since March 22.
Ultra-low-sulfur diesel for August delivery fell 1.13 cents, or 0.4 percent, to $3.0894 a gallon on volume that was 4.9 percent below the 100-day average. It gained 2 percent on the week.
ULSD’s crack spread versus West Texas Intermediate crude sank 48 cents to $21.70 a barrel. The premium over Brent increased 22 cents to $21.74.
To contact the reporter on this story: Barbara Powell in Dallas at firstname.lastname@example.org
To contact the editor responsible for this story: Dan Stets at email@example.com