Portland Gasoline Surges Amid Northwest Pipeline Slowdowns
Gasoline on the spot market in Portland, Oregon, strengthened to the highest level in seven weeks as pipelines in the Northwest shut or ran at reduced capacity following spills.
Phillips 66 (PSX) expects to restart its Seminoe pipeline by the end of this week after shutting it July 2 after detecting a leak in southern Montana. The line transports finished petroleum products such as gasoline and diesel from the company’s Billings, Montana, refinery to Wyoming, Utah and Colorado.
Kinder Morgan Energy Partners LP (KMP) is running its Trans Mountain pipeline at 80 percent of normal pressure after restarting the line following a June 26 spill. The 300,000-barrel-a-day pipeline transports oil and refined products from Edmonton, Alberta, to the central British Columbia region, Vancouver and Puget Sound area in Washington.
Conventional, 84-octane gasoline in Portland strengthened by 8.5 cents to a premium of 26.5 cents a gallon more than futures on the New York Mercantile Exchange at 3:46 p.m. East Coast time, according to data compiled by Bloomberg. It’s the highest premium since May 20.
Los Angeles Carbob strengthened by 1.5 cents to a premium of 17.5 cents a gallon above New York futures. Carbob in San Francisco weakened by 2.5 cents to an 11.5-cents-a-gallon premium.
State-blend diesel in Los Angeles weakened by 0.5 cent to a premium of 4.5 cents a gallon to Nymex futures. The fuel in San Francisco was unchanged at a 3-cent premium.
Low-sulfur diesel in Portland strengthened by 0.5 cent to 4 cents over ultra-low-sulfur diesel on the Nymex.
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