Gulf Gasoline Drops With Inventories Near Two-Year High
U.S. Gulf Coast gasoline weakened as inventories in the area advanced to the highest level since February 2011.
Stockpiles of gasoline on the Gulf gained 763,000 barrels to 81.3 million in the week ended Dec. 21, the highest since Feb. 4, 2011, according to Energy Department data compiled by Bloomberg. That’s also the highest seasonal level since at least 1990, when the Energy Department started tracking data.
The discount for conventional, 87-octane gasoline on the Gulf widened 4.13 cents to 15.5 cents below futures on the New York Mercantile Exchange at 11:55 a.m. Reformulated gasoline to be blended with ethanol on the Gulf dropped 3.13 cents to 10.5 cents below futures.
Ultra-low-sulfur diesel was unchanged in the region at a discount of 4.25 cents. Supplies of distillates including heating oil and diesel added 1.3 million barrels to 35.3 million during that same time period.
Valero Energy Corp. (VLO)’s new 57,000-barrel-a-day hydrocracker at the Port Arthur, Texas, refinery has reached planned rates after starting up early this month, said Bill Day, a San Antonio-based company spokesman, in an e-mail today.
Valero plans to bring a similar unit online early next year at its St. Charles, Louisiana plant. The two will add more than 80,000 barrel a day of diesel and jet fuel output.
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