Gulf Coast Gasoline Extends Losing Streak on Supply Glut
Refiners on the U.S. Gulf Coast, referred to as PADD 3, processed 8.41 million barrels a day of crude and other feedstock in the week ended May 10, the highest level since Dec. 14, according to U.S. Energy Information Administration data. Stockpiles of motor fuel were 74.4 million barrels during the same time period, the data showed.
“It seems like there is a big supply glut,” Carl Larry, Houston-based president of Oil Outlooks & Opinions LLC, said in an electronic message.
Conventional, 85-octane gasoline, or CBOB, on the Gulf Coast fell 2.5 cents to a discount of 24.75 cents a gallon versus New York Mercantile Exchange futures at 2:08 p.m., the lowest level since April 5, according to data compiled by Bloomberg. Reformulated, 84-octane gasoline, or RBOB, fell 2 cents to 2.75 cents below futures.
Ultra-low-sulfur diesel advanced 0.5 cent to a discount of 4.75 cents to Nymex futures.
Valero Energy Corp. (VLO)’s 145,000-barrel-a-day Houston refinery reported flaring today after an issue with a fluid catalytic cracker, Bill Day, a company spokesman based in San Antonio, said in an e-mail. Production wasn’t affected, he said.
The 3-2-1 crack spread on the Gulf Coast, a rough measure of refining margins based on West Texas Intermediate in Cushing, Oklahoma, slipped $1.71 to $19.80 a barrel. The same spread for Light Louisiana Sweet oil dropped $1.60 to $7.52 a barrel, a fifth consecutive decline.
The 3-2-1 crack spread in New York, measured using benchmark Brent oil in Europe, narrowed 43 cents to $17.67 a barrel. Reformulated, 87-octane gasoline, or RBOB in the region, strengthened 0.02 cent to a discount of 0.23 cent a gallon. Ultra-low-sulfur diesel fuel also advanced, increasing 0.1 cent to 0.1 cent a gallon.
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