Gulf Gasoline Rises as Weather-Related Refinery Outages Persist
Power outages from the storm caused Western to shut all hydrogen consuming and producing plants at its El Paso, Texas, refinery yesterday, according to a company filing with the Texas Commission on Environmental Quality.
Valero reduced rates at its McKee refinery in Texas after issues with crude supply from a pipeline, Bill Day, a company spokesman, said in an e-mail.
The discount for Gulf Coast conventional, 87-octane gasoline narrowed 0.25 cent to 7.5 cents a gallon versus futures traded on the New York Mercantile Exchange in New York at 4:06 p.m., according to data compiled by Bloomberg. Prompt delivery rose 0.74 cent to $2.4284 a gallon.
The same gasoline in the Midwest, or Group 3, strengthened 0.25 cent to a discount of 3 cents a gallon.
The Explorer Pipeline Co. started its oil products line today after shutting down yesterday at the request of the power company, Tom Jensen, a spokesman for the company, said in a telephone message. “We should be able to make up that down time with a little faster rate,” he said.
The McKee refinery, which can process 170,000 barrels a day, obtains oil from storage in Cushing, Oklahoma, through third-party pipelines, according to the Valero website.
“We don’t have an estimate, but we expect the reduced rates to be temporary,” Day said.
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