Gasoline May Rise Above $4 on Refinery Shudowns, Morse Says
Gasoline prices may rise to above $4 next summer as some refineries in the East Coast close, reducing capacity, said Edward Morse, New York-based head of commodities research at Citigroup.
“One of the things that’s lurking in the marketplace is the consequence of this shutting in of about 700,000 barrels a day of East Coast refineries,” Morse said in a Bloomberg TV interview with Tom Keene. “We could see $4 as a floor price in the summer.”
Sunoco Inc. (SUN) and ConocoPhillips (COP) have idled two plants in Marcus Hook and Trainer, Pennsylvania. Sunoco plans to shut the Philadelphia refinery by July if a buyer isn’t found. Together, the plants account for about half of U.S. East Coast refining capacity, according to Energy Department data.
Regular gasoline at the pump, averaged nationwide, rose 0.3 percent yesterday to $3.216 a gasoline, according to AAA data.
-- Editors: David Marino, Richard Stubbe
To contact the reporter on this story: Moming Zhou in New York at Mzhou29@bloomberg.net;
To contact the editor responsible for this story: Dan Stets at email@example.com