Heating Oil and Gasoline Rise After Motiva Shuts Crude Unit
Heating oil and gasoline rose after a crude unit was shut at the largest refinery in the U.S. following a fire.
Heating oil jumped as much as 2.5 percent after Motiva Enterprises LLC was said to idle the new 325,000-barrel-a-day crude unit at its Port Arthur, Texas, plant. The unit, which was running at about 240,000 barrels a day after resuming operation this month, shut down following a fire, a person familiar with the situation said.
“Since it was a game-changer when it restarted it will be a game changer when it shuts again,” said Andrew Lebow, a senior vice president at Jefferies Bache LLC in New York. “We had all factored in higher production of distillate and gasoline.”
Heating oil for January delivery advanced 6.99 cents, or 2.4 percent, to $2.9969 a gallon at 10:10 a.m. on the New York Mercantile Exchange. Gasoline for January delivery advanced 5.11 cents, or 2 percent, to $2.6616 a gallon.
The average nationwide cost for regular gasoline fell 1.3 cents to a $3.315 a gallon, AAA said today on its website. That’s the lowest level since Jan. 2.
The January heating oil crack spread jumped $1.82 to $38.96 a barrel, and the gasoline spread increased $1 to $24.85.
“It should be bullish for the crack spreads,” Lebow said.
The Energy Department is scheduled to report last week’s inventories at 10:30 a.m. today in Washington. The report will probably say that gasoline stockpiles rose 2 million barrels and distillate supplies were up by 1.1 million barrels, according to the median estimate of 11 analysts in Bloomberg survey.
To contact the reporter on this story: Barbara Powell in Dallas at email@example.com
To contact the editor responsible for this story: Dan Stets at firstname.lastname@example.org