US Cash Products-PBF refinery fire boosts NY gasoline

Mon Mar 19, 2012 4:18pm EDT

* Harbor gasoline rises 4.50 cts/gal on hydrotreater fire
    * Harbor distillates remain strong
    * Midwest ULSD firms on agricultural demand

    NEW YORK, March 19 (Reuters) - The New York Harbor gasoline
market received a boost on Monday with differentials for March
supplies rising sharply after a fire on Friday at PBF Energy's
182,000 barrels-per-day Delaware City, Delaware, refinery.	
    The fire in a desulfurization unit, also known as a
hydrotreater, was extinguished after less than an hour late
Friday, PBF said. The company declined to comment on operations
but an industry source said one of fou r hy drotreaters at the
plant remained shut.  	
    Regional gasoline trade was lifted by the news, with
any-March F4 RBOB done at 19.25, 19.00, 18.50, 18.25 and 18.00
cents per gallon under the April RBOB futures contract on the
New York Mercantile Exchange, up 4.50 cents from Friday's
settlement.	
    Prompt F4 RBOB was done at 19.00 cents under, up 2.50 cents
from Friday.	
    Prompt M4 conventional gasoline was done at 17.00 cents
under, up 4.00 cents.	
    Harbor distillate markets marched higher, with prompt
ultra-low sulfur diesel still garnering much of the trade's
attention, and traded at 8.00 cents over the April heating oil
futures contract on NYMEX for a barge load, up 0.50 cent.	
    Pipeline ULSD was heard done 7.50 cents over. 	
    Traders have been scrambling to make sure they have their
ULSD needs were covered ahead of an April 15 deadline from
Buckeye Partners LP to switch all of its pipelines and
terminals to lower-than-15-parts per million heating oil.    	
    In the Midwest, Chicago ULSD lost ground in afternoon
trading and fell about 7.50 cents as a major trade house sold
more supply into the market, traders said.	
    Chicago ULSD was seen at 17.50 cents under April heating oil
futures contract, the traders added.	
    Meanwhile, Group Three ULSD rose 1.50 cents to 2.00/2.50
cents over on seasonal agricultural demand as the planting
season approaches.	
    Warm weather this winter has created an ideal environment
for early corn planting in the U.S. Corn Belt. 	
    On the Gulf Coast, M2 conventional gasoline gained 3.50
cents 14.25 cents under after Valero Energy Corp 
announced it would shutter its 235,000 bpd refinery in Aruba by
the end of March because of poor margins. 	
    The refinery had already shut in 2009 for 17 months because
of poor economics, and restarted in early 2011. The plant had 
processed heavy sour crude oil into gasoline, heating oil and
feedstock components to make finished fuel to the U.S. Gulf
Coast, the New York Harbor, the Caribbean, South America and
Europe.	
    Traders said part of Monday's gasoline price boost also
stemmed from the fuel's latest five-day lifting cycle scheduling
to move on the Colonial Pipeline.  	
    Gulf Coast ULSD also climbed a penny to 5.50/6.00 cents over
after the Aruba news emerged.	
           	
    For more refinery news, please go to 	
	
    U.S. GULF COAST 
    Scheduling Cycle 17 M2 conventional gasoline was seen done
early at 17.75 cents under April RBOB futures, up slightly, then
later at 14.25 cents under, up 3.50 cents on the day.  	
   Cycle 17 61-grade ultra-low sulfur diesel climbed a penny to
5.50/6.00 cents over the April heating oil screen. 	
    Cycle 17 54-grade jet fuel was flat at 2.00 cents over.	
    Scheduling Cycle 17 heating oil was steady at 4.25 cents
under.	
	
    NEW YORK HARBOR 
    Prompt F4 RBOB was done at 19.00 cents under, up 2.50 cents,
while any-March barrels were done at 19.25, 19.00, 18.50, 18.25
and 18.00 cents under, up 4.50 cents.	
    Early April F4 RBOB was talked at 17.75/17.25 cents under. 	
    Ratable April F2 RBOB was done at 0.15 cent over and flat to
the May RBOB future contract on NYMEX.	
    Ratable May F2 RBOB was done at 2.00 cents over June RBOB
futures, while ratable June F2 RBOB was done at 2.65 cents over
July RBOB futures.	
    Prompt M4 conventional gasoline was called either side of
17.00 cents under, up about 3.50 cents, while any-March barrels
were talked at 17.25/16.75 cents under, up about 1.50 cents.	
    Prompt ULSD was done at 8.00 cents over for a barge load and
7.50 cents over pipeline supply, while any-March barrels were
pegged at 7.50/7.75 cents over.	
    Prompt heating oil was called 1.75/1.25 cents under, down
0.25 cents, while any-March material was talked at 1.25/0.75
cents under, up a quarter cent.	
    Prompt and any-March jet fuel were pegged at 5.50/6.00 cents
over, also unchanged, with supply changing hands at 5.75 cents
over.	
    March kerosene was pegged at either side of 11.00 cents
over, up 1.00 cent, while ultra-low sulfur kerosene was talked
at 15.50/16.50 cents over. 	
    	
    MIDWEST  
    Chicago Cycle 3 gasoline was seen trading within its
established range at 7.00/5.00 cents under.	
    Chicago Cycle 3 ULSD fell 7.50 cents a gallon to 17.50 cents
under futures.	
    Group Three gasoline rose a quarter cent to 17.75/17.25
cents under, while Group Three ULSD rose 1.50 cents to 2.00/2.50
cents over.
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