US Cash Products-Gulf Coast gasoline higher on refinery snags

Tue Aug 13, 2013 3:49pm EDT

* Gulf Coast gasoline differentials rise
    * Chicago CBOB gasoline differentials fall
    * Harbor jet fuel talked higher

    NEW YORK, Aug 13 (Reuters) - Gulf Coast gasoline differentials rose on
Tuesday after refineries in Texas reported malfunctions, traders said.
    Gulf A2 CBOB gasoline traded at 18.50 cents and 18.25 cents under the
September RBOB gasoline futures contract on the New York Mercantile Exchange
(NYMEX), 2.00 cents a gallon higher than late-Monday levels. 
    Conventional M2 gasoline rose 1.25 cents a gallon to 9.50 cents under
September RBOB futures after trading earlier at 10.00 cents and 10.25 cents
    Refiner Valero Energy Corp reduced rates on its crude and vacuum
distillation units at its 290,000 barrels-per-day (bpd) plant in Port Arthur,
Texas, sources told Reuters. 
    Motiva Enterprises, a joint venture of Royal Dutch Shell and Saudi
Refining, also reported an upset at a sulfur recovery unit at its 600,000 bpd
refinery in Port Arthur. 
    In the Midwest, Chicago differentials fell after a rare day on Monday in
which CBOB gasoline, ultra-low sulfur diesel (ULSD) as well as their Group Three
market counterparts all closed the day unchanged.
    Chicago CBOB gasoline differentials fell 1.50 cent a gallon to 14.00/13.00
cents under September RBOB gasoline futures, while ULSD fell 0.75 cents a gallon
to 7.50/7.00 cents under September heating oil futures.
    Traders said there was no specific events or news that had pressured the
Chicago grades lower. Instead, the market is well supplied. Gasoline and
distillates stocks grew in the week ending Aug. 2 and there were few refinery
    The market appears to have ignored a unit malfunction at Phillips 66's
 333,000 bpd Wood River, Illinois, refinery, which the company reported
to regulators over the weekend.
    Group Three ULSD rose 0.50 cent per gallon to 2.25/2.75 cents over September
heating oil futures while gasoline was flat.
    In the New York Harbor, prompt jet fuel was talked 2.25 cents under
September heating oil futures, a trader said, up half a penny per gallon from
Monday. ULSD was talked 0.50 cent under September heating oil futures, up a
quarter penny per gallon from Monday, the trader said.
    In gasoline, differentials were largely unchanged. Prompt M2 conventional
gasoline was talked 3.00 cents under September RBOB futures, up a quarter penny
per gallon from Monday. 
    Prompt F2 RBOB was talked 4.00 cents over September RBOB futures, a trader
said, unchanged from Monday. Earlier in the day, another trader said F2 RBOB
traded at 3.75 cents over for delivery August 19 through 20th. 
    The market for renewable identification number (RIN) credits was seen
slightly higher, with 2013 D6 RINs trading at 73.5 cents as of Tuesday
afternoon, a trader said. They were seen bid lower, at 68 cents each, at the
start of the day.    
    For more refinery news, please go to 
                                                  Latest day      
                            Timing      NYMEX      Bid    Offer   Change
 U.S. GULF COAST * Scheduling                         
 A2 CBOB gasoline           Cycle 45      RBOB    -18.50  -18.25   2.00
 M2 conventional gasoline   Cycle 45      RBOB    -9.75   -9.25    1.25
 62-grade ULSD              Cycle 45       HO     -4.00   -3.00    0.00
 54-grade jet fuel*         Cycle 45       HO      -6.00  -5.00    0.00
 Heating oil                Cycle 46       HO     -15.00  -14.50  -0.25
 M2 conventional gasoline   Prompt        RBOB    -3.25   -2.75    0.25
                            Any-Month     RBOB    -5.75   -5.25    0.00
 F2 RBOB                    Prompt        RBOB    3.75     4.25    0.00
                            Any-Month     RBOB    2.00     2.50    0.00
 ULSD                       Prompt         HO     -1.00    0.00    0.25
                            Any-Month      HO     0.00     0.50    0.00
 Heating oil                Prompt         HO    -10.75   -10.25   0.00
                            Any-Month      HO    -15.25   -14.75   0.00
 Jet fuel                   Prompt         HO     -2.50   -2.00    0.50
                            Any-Month      HO     -7.50   -7.00    0.00
 Chicago CBOB gasoline      Cycle 2       RBOB   -14.00   -13.00  -1.50
 Chicago ULSD               Cycle 2        HO     -7.50   -7.00   -0.75
 Group Three gasoline                     RBOB    -6.75   -6.25    0.00
 Group Three ULSD                          HO      2.25    2.75    0.50