NEW YORK Nov 21 Differentials for WTI Midland
crude rebounded on Wednesday after dropping earlier in the week
due to the delayed restart of Phillips 66's 146,000
barrel per day Borger, Texas refinery, according to analysts and
The plant began maintenance work in late September, Phillips
said at the time. Regulatory filings submitted by the company in
September showed work on fluid catalytic cracking unit 40 would
extend through Oct. 29, while work on FCC 29 would run from Oct.
21 to Nov. 30.
Tuder Pickering Holt & Co said in a research note that the
plant had been expected to restore operations by last Monday,
and that the turnaround had been extended until the weekend,
helping to push the differential of Midland crude to $20 below
benchmark West Texas Intermediate this week, well over levels of
around $3 seen in October.
Traders said on Tuesday the grade traded as low as $22 under
WTI, adding the weakness was being exacerbated by end of the
month book squaring. On Wednesday, brokers said the grade had
rebounded to trade at $10 under the benchmark.
Simmons & Co International said the weekend restart of the
plant would be followed by a ramp-up period over several days.
The Borger refinery is a 50-50 joint venture of Phillips and
Cenovus Energy Inc.