Gulf Coast Fuel Gains After Krotz Spring Refinery Fire
U.S. Gulf Coast gasoline strengthened for a second day versus futures after Alon USA Energy Inc. (ALJ)’s Krotz Springs, Louisiana, refinery shut a reformer and a report showed area fuel supplies at a six-month low.
Gasoline inventories on the Gulf Coast, the PADD 3 area, fell 1.75 million barrels to 71.9 million in the week ended April 19, the lowest level since Oct. 26, according to Energy Information Administration data.
The discount for conventional, 85-octane gasoline, or CBOB, in the Gulf narrowed by 1.87 cents to 15.88 cents a gallon below futures on the New York Mercantile Exchange at 12:05 p.m. Reformulated gasoline, or RBOB, strengthened 0.5 cent to trade at a 6.5-cent premium to futures.
Ultra-low-sulfur diesel fell 0.5 cent to a discount of 3.25 cents a gallon versus Nymex futures.
The 3-2-1 crack spread for Gulf refiners, a rough measure of refining margins for gasoline and diesel based on West Texas Intermediate in Cushing, Oklahoma, widened 96 cents to $23.05 a barrel, the first expansion in four days, according to data compiled by Bloomberg. The same spread for Light Louisiana Sweet oil gained 21 cents to $11.28 a barrel.
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