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Commodities

Delta cuts output at Philadelphia-area refinery: source

NEW YORK (Reuters) - Delta Air Lines has cut production rates by roughly 16 percent at its Philadelphia-area refinery, a source familiar with the plant’s operations said on Tuesday, as refining margins have fallen below their ten-year average for this time of year.

It is unusual for refiners to be cutting production during the busy, summer driving season. The move comes as the U.S. East Coast is brimming with petroleum products leaving full tankers to sit idle in the New York Harbor as they wait to unload..

The supply glut has helped hammer gasoline margins, which have fallen to their lowest levels since February.

It’s unclear whether the production cuts at the 185,000 barrel-per-day refinery are related to weakening gasoline margins or something unrelated, the source said.

Delta did not immediately respond to an emailed request for comment.

Reporting By Jarrett Renshaw Editing by W Simon

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