Gulf Gasoline Strengthens on Incident at Port Arthur Refinery

U.S. Gulf Coast gasoline strengthened relative to futures in New York after Motiva Enterprises LLC reported an incident at the largest refinery in the region.

Conventional, 85-octane gasoline, or CBOB, gained 0.75 cent to a discount of 15.5 cents a gallon below New York Mercantile Exchange futures at 2:12 p.m. Conventional, 87-octane gasoline also added 0.75 cent, narrowing its discount to 14 cents.

Motiva’s Port Arthur, Texas, refinery report a “process incident” and flaring from an alkylation unit and fluid catalytic cracker, according to a filing with state regulators. The 600,000-barrel-a-day plant halted startup of a unit yesterday after emissions, a notice to the U.S. National Response Center said. Destin Singleton, a spokeswoman for the plant, declined to comment on specific units.

The 3-2-1 crack spread on the Gulf Coast, a rough measure of refining margins for gasoline and diesel based on West Texas Intermediate in Cushing, Oklahoma, added 86 cents to $9.03 a barrel. The same spread based on Light Louisiana Sweet oil gained 46 cents to $6.63 a barrel.

California-blend, or Carbob, gasoline in San Francisco strengthened 1 cent to a premium of 5 cents a gallon over futures at 2:16 p.m. New York time.

Carbob in Los Angeles weakened by 2.25 cents to a premium of 11 cents a gallon. Conventional, 84-octane gasoline in Portland, Oregon, strengthened by 1 cent to a premium of 9 cents a gallon.

California-blend diesel in San Francisco was unchanged at a discount of 2.5 cents a gallon to ultra-low-sulfur diesel futures on the Nymex. The fuel in Los Angeles strengthened by 0.88 cent to a premium of 1.13 cents. Low-sulfur diesel in Portland strengthened by 2 cents to a discount of 2.5 cents.

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