U.S. Cash Products-Midwest gasoline, diesel up on refinery fires, outages
* New York Harbor reaction to Philadelphia refinery fire muted
* Gulf gasoline up on refinery maintenance
HOUSTON, Jan 12 (Reuters) - Midwest cash gasoline differentials rose on
Monday on fires and unit shutdowns at two refineries and outages at the largest
in the region, traders said.
Another fire that prompted unit closures at the largest refinery on the East
Coast also helped boost New York Harbor gasoline differentials, but reaction was
muted in light of a 4.7 million-barrel build in regional stocks as of Jan. 2,
traders said.
An explosion and fire on Saturday at Husky Energy Inc (Toronto: HSE.TO - news) 's 155,000
barrels-per-day (bpd) refinery in Lima, Ohio, involved an isocracker unit that
was being restarted after planned work and also damaged a nearby ultraformer,
sources familiar with refinery operations said. No one was hurt.
The company said on Monday it expected to suspend production at the refinery
for about a week, and that the plant can operate without isocracker.
Group Three gasoline differentials climbed 3.00 cents per gallon to a
bid-offer spread of 15.50/14.50 cents under February RBOB on the New York
Mercantile Exchange, while Chicago gasoline rose 2.50 cents per gallon to
a 19.00-cent discount to futures, traders said.
A Saturday fire also prompted shutdowns of crude and vacuum distillation
units at Marathon Petroleum Corp's 212,000 bpd refinery in Robinson (LSE: RBN.L - news) ,
Illinois, but both were expected to restart by Tuesday.
BP Plc's 413,500 bpd refinery in Whiting, Indiana - the largest in
the Midwest - also was restarting a crude unit and a reformer on
Monday.
ULSD differentials in both markets were slower to react, starting out flat
while showing gains later in the day, traders said. Chicago ULSD rose 2.00 cents
per gallon to 23.00/21.00 cents under February heating oil futures, while
Group Three ULSD climbed half a cent per gallon to an 18.00-cent discount to
futures.
Midwest distillate stocks rose 4.2 million barrels as of Jan. 2 with
refineries operating at nearly 95 percent capacity, according to the U.S. Energy
Information Administration. Midwest gasoline stocks gained 1.7 million
barrels the same week.
In the Harbor, gasoline differentials showed smaller gains after
Philadelphia Energy Solutions shut the 200,000 bpd the Girard Point section of
its 335,000 bpd refinery on Saturday after problems in a utility section
triggered small fires. The company expected the section to restart by Tuesday.
F5 RBOB gasoline differentials rose half a cent per gallon to a 2.75-cent
discount to February RBOB futures, while conventional M4 gasoline traded at a
2.00-cent premium to futures, up a penny per gallon from Friday's finish.
Differentials for Harbor distillates were largely flat on Monday. The EIA
said East Coast gasoline stocks gained 4.7 million barrels as of Jan 2, and
distillate inventories were up 2.9 million barrels.
On the U.S. Gulf Coast, gasoline differentials showed larger increases on
Monday, but traders attributed the boosts to ongoing refinery maintenance in the
region rather than anticipated demand in the Midwest, particularly with units at
the Whiting and Robinson refineries restarting. Planned work is under way at
Exxon Mobil Corp's 560,500 bpd refinery in Baytown, Texas, and Phillips
66's 247,000 bpd Alliance refinery in Belle Chasse, Louisiana.
A4 CBOB, or conventional regular gasoline blendstock formulated for blending
with 10 percent ethanol, traded as high as 11.25 cents under February NYMEX RBOB
before retreating to a 12.00-cent discount, up 3.50 cents per gallon from
Friday's levels.
Conventional M4 gasoline in the Gulf rose to a bid-offer spread of 9.50/9.00
cents under futures, up 2.75 cents per galloon, traders said.
For more refinery news, please go to
Latest day
Timing NYMEX Bid Offer Change
Contract
U.S. GULF COAST * Scheduling
A4 CBOB gasoline Cycle 3 RBOB -12.25 -11.75 3.50
M4 conventional gasoline Cycle 3 RBOB -9.50 -9.00 2.75
62-grade ULSD Cycle 3 HO -18.00 -17.50 -1.00
54-grade jet fuel Cycle 3 HO -23.00 -22.00 0.50
Heating oil Cycle 2 HO -26.00 -22.00 0.00
NEW YORK HARBOR
M4 conventional gasoline Prompt RBOB 1.75 2.25 1.00
Any-Month RBOB 2.00 2.50 1.00
F5 RBOB Prompt RBOB -3.00 -2.50 0.50
Any-Month RBOB -2.75 -2.25 0.50
ULSD Prompt HO 2.00 2.50 0.00
Any-Month HO 1.75 2.25 0.00
Heating oil Prompt HO -4.00 -3.50 0.00
Any-Month HO -5.25 -4.75 -0.25
Jet fuel Prompt HO -4.00 -3.50 0.00
Any-Month HO -3.75 -3.25 0.50
MIDWEST
Chicago CBOB gasoline Cycle 2 RBOB -20.00 -18.00 2.50
Chicago ULSD Cycle 2 HO -23.00 -21.00 2.00
Group Three gasoline RBOB -15.50 -14.50 3.00
Group Three ULSD HO -18.50 -17.50 0.50
(Reporting by Kristen Hays in Houston; Editing by Peter Galloway)