UPDATE 1-Group Three gasoline differentials rise on refinery problems
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.