UPDATE 1-Group Three gasoline differentials rise on refinery problems

Thu May 2, 2013 1:40pm EDT

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NEW YORK, May 2 (Reuters) - Differentials for Group Three
gasoline, which is shipped along a key pipeline across U.S.
Midwestern states such as Kansas, Iowa and Nebraska, rose on
Thursday due to problems or outages at several refineries in the
region, traders said.
    The differentials, which are the deficit or premium to the
price of RBOB gasoline futures traded on the New York
Mercantile Exchange, rose 3.50 cents a gallon to trade at 7.00
cents over June RBOB futures, traders said.
    RBOB gasoline futures were 1.38 percent higher at $2.7570 a
gallon.
    A catalytic cracker at CVR Refining' s 70,000
barrel per day Wynnewood, Oklahoma, refinery was shut on Sunday
due to a malfunction and repairs to it will take up to 16 days,
Chief Executive Officer Jack Lipinski said during an earnings
call.
    Traders said they heard of issues at HollyFrontier Corp's
 155,300 bpd Tulsa refinery. The company said in February
it shifted a March turnaround at the Tulsa East plant to May.
    HollyFrontier declined to say whether this turnaround had
begun. In February, it said maintenance would include work on a
crude unit reformer, naptha hydrotreaters and other units.
    Traders also cited talk of a small fire at Citgo Petroleum
Corp's 167,000 bpd Lemont, Illinois, refinery
although a problems with a refinery in that state are more
likely to have a direct impact on Chicago differentials.
    Sources familiar with operations at the refinery told
Reuters Citgo shut down a diesel hydrotreater after the fire
broke out at a valve. The unit is expected to be shut for a day
or two, while the valve is being repaired.
    Chicago CBOB gasoline differentials eased slightly to
26.00/28.00 over June RBOB gasoline futures, half a penny lower
than Wednesday's close.
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