Chicago Gasoline Rallies on Marathon Equipment ShutdownChristine Harvey
Spot gasoline in Chicago strengthened after Marathon Petroleum Corp. shut equipment at its refinery in Michigan.
Equipment was being idled at the 114,000-barrel-a-day Detroit plant after more than 100 pounds of hydrogen sulfide leaked from a pipeline in the area, according to a filing with the U.S. National Response Center.
Jamal Kheiry, a spokesman for Marathon, confirmed the information in the filing and declined to comment any further on operations at the plant. The refinery, located in southwest Detroit, processes mostly heavy crude after a 2012 upgrade.
Conventional, 85-octane gasoline, or CBOB, in Chicago strengthened 1 cent to 14.5 cents a gallon above futures on the New York Mercantile Exchange at 2:38 p.m., the largest premium since June 11 and the sixth consecutive advance.
The 3-2-1 crack spread in Chicago, a rough measure of refining margins for gasoline and diesel based on West Texas Intermediate oil in Cushing, Oklahoma, dropped $1.21 to $19.76 a barrel, the first decline in five days, according to data compiled by Bloomberg.
Chicago gasoline traded 29.25 cents above the same fuel on the Gulf Coast, the highest premium since July 12. Gulf Coast CBOB weakened 2.5 cents to 14.75 cents below futures.