Fuel Declines in New York on Phillips 66 Bayway Startup
Spot gasoline and diesel fuel weakened on the U.S. East Coast today after Phillips 66 (PSX) reported emissions associated with an equipment startup at the Bayway refinery in New Jersey.
The 238,000-barrel-a-day Bayway plant, the largest single refinery in the New York Harbor region, flared more than 500 pounds of sulfur dioxide yesterday, according to filings with regulators. The unit was undergoing repairs and maintenance following Hurricane Sandy, which went ashore in New Jersey, leaving Bayway partially flooded and without power.
Bayway was one of at least six refineries that halted production or cut rates as Sandy hit Oct. 29. Bayway is the last to reopen.
Reformulated gasoline for ethanol blending, or RBOB, in New York Harbor slid 1.75 cents a gallon to a premium of 5 cents over futures on the New York Mercantile Exchange at 11:40 a.m. The premium for conventional gasoline for ethanol blending, or CBOB, declined by 2.37 cents to 4.63 cents.
Ultra-low-sulfur diesel retreated 0.75 cent to a premium of 20 cents a gallon versus heating oil futures.
Conventional gasoline in the U.S. Gulf Coast also weakened versus futures as Phillips 66 was scheduled to start a fluid catalytic cracker at its Borger, Texas, refinery.
The 146,000-barrel-a-day refinery shut the unit for work Sept. 24. The maintenance was expected to last until Nov. 20 and was extended last week, the company said.
CBOB on the Gulf Coast declined by 3.37 cents to trade at a discount of 17.75 cents a gallon versus futures. Eighty-seven octane gasoline dropped 2.25 cents to a discount of 16.25 cents.
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