Gulf Coast Gasoline Rises to Two-Week High Amid Refinery OutagesChristine Harvey
U.S. Gulf Coast gasoline strengthened to the highest level in two weeks as regional refinery outages reduced output.
Conventional, 85-octane gasoline blendstock, or CBOB, on the Gulf Coast gained 1.88 cents to 13.25 cents a gallon below futures on the New York Mercantile Exchange at 11:56 a.m., the narrowest discount since Sept. 13. Conventional, 87-octane fuel added 1.5 cents to a discount of 12.5 cents, also a two-week high.
Differentials strengthened as Motiva Enterprises LLC and Royal Dutch Shell Plc continued the restart process at the Port Arthur and Deer Park refineries. Exxon Mobil Corp.’s Baton Rouge site had a unit shut for maintenance, while Citgo Petroleum Corp. prepared to restart units after a turnaround at the Corpus Christi plant in Texas.
The four plants have a combined capacity of 1.61 million barrels a day, according to data compiled by Bloomberg.
The 3-2-1 crack spread on the Gulf Coast, a rough measure of refining margins for gasoline and diesel based on West Texas Intermediate in Cushing, Oklahoma, slipped 17 cents to $9.31 a barrel. The same spread based on Light Louisiana Sweet oil dropped the same amount to $6.91 a barrel, according to data compiled by Bloomberg.