Bloomberg Anywhere Remote Login Bloomberg Terminal Request a Demo

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Gasoline Declines as Refiners Near End of Maintenance

May 19 (Bloomberg) -- Gasoline futures retreated from a two-week high in New York as U.S. refineries completed maintenance, signaling an increase in production of motor fuel.

Futures slipped 0.3 percent. Motiva Enterprises LLC returned its Norco, Louisiana, refinery to normal operations following planned work, while Exxon Mobil Corp.’s Chalmette site, also in Louisiana, was expected to complete work. The June contract’s premium over July narrowed.

“Nearly every catalytic cracker is now back up and running and that’s at the heart of refinery gasoline production,” said Andy Lipow, president of Lipow Oil Associates LLC in Houston. “We have some crude units still down but as that work wraps up, we’ll see further increases, especially for diesel.”

Gasoline for delivery in June fell 0.89 cent to settle at $2.9646 a gallon at on the New York Mercantile Exchange. The June-July spread narrowed 0.25 cent to 1.55 cents a gallon.

U.S. gasoline production increased to 9.61 million barrels a day in the week ended May 9, the most since December, Energy Information Administration data show.

Stockpiles in the Central Atlantic region, which includes New York Harbor, the delivery point for Nymex futures, grew 781,000 barrels to 28.5 million in the same period, a second consecutive advance.

Refinery Work

Exxon’s Chalmette refinery began planned work on the No. 2 crude unit and a coker near the end of April. The company’s Beaumont, Texas, plant also removed a crude unit from service for several weeks of work, the company said on April 22.

Motiva’s Port Arthur, Texas, refinery, the largest in the U.S., was expected to restart a hydrocracker May 14, according to a person familiar with operations.

Gasoline’s crack spread versus West Texas Intermediate crude declined 96 cents to $21.90 a barrel. The motor fuel’s premium to European benchmark Brent gained 11 cents to $14.49 a barrel.

June-delivery diesel fell 1.27 cents, or 0.4 percent, to $2.9409 a gallon. Diesel’s crack spread versus WTI crude narrowed $1.12 to $20.91 a barrel while the motor fuel’s premium to Brent slipped 12 cents to $13.98.

The average U.S. pump price was unchanged at $3.646 a gallon, according to data from Heathrow, Florida-based AAA. Prices are 0.3 cent below a year ago.

To contact the reporter on this story: Christine Harvey in New York at charvey32@bloomberg.net

To contact the editors responsible for this story: Dan Stets at dstets@bloomberg.net David Marino, Charlotte Porter

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.