New York Gasoline Strengthens After Sunoco Plant Power Outage
Spot gasoline in New York Harbor jumped the most since December after Sunoco Inc. (SUN) worked to return units to service at its Marcus Hook refinery in Pennsylvania after a power outage yesterday.
The 194,000-barrel-a-day refinery “momentarily” lost power at 4:19 p.m. local time yesterday, Lynda Rebarchak, a spokeswoman for the southeast regional office of the Pennsylvania Department of Environmental Protection, said in an e-mail. At 8:30 p.m., Sunoco informed the department that “all units were coming back online,” she said.
The discount for conventional 87-octane gasoline in New York narrowed 3.38 cents, the biggest gain since Dec. 1, to 12.25 cents a gallon. Prompt delivery rose 5.21 cents to $2.9233 a gallon.
The power failure occurred when a transmission customer was performing work, Karen Muldoon Geus, a spokeswoman for PECO Energy, a subsidiary of Exelon Corp., said in an e-mail late yesterday.
Premium 93-octane unleaded in the Gulf Coast surged 5.75 cents to a 5-cent premium over futures, after Marathon Oil Corp. shut an alkylation unit at its Texas City, Texas, refinery following a release of hydrofluoric acid March 27. The unit produces alkylate, used to make high-octane gasoline.
The gap between 87-octane and 93-octane fuel widened to 17 cents a gallon, the largest since May 25.
The discount for conventional, 87-octane gasoline in the Gulf Coast narrowed 0.75 cent to 12 cents a gallon versus futures traded on the New York Mercantile Exchange at 4:16 p.m., according to data compiled by Bloomberg. Prompt delivery rose 2.35 cents to $2.9236 a gallon.
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