Reuters: Valero buying gasoline on east coast after Wales refinery outage

|By:, SA News Editor

Valero Energy (NYSE:VLO) was buying gasoline cargoes for spot delivery in the U.S. east coast, rather than for the usual New York Harbor market, after an outage at its 270K bbl/day Pembroke refinery in Wales earlier this week, Reuters reports, citing two trade sources.

Gasoline prices in the New York Harbor have surged and traded $0.06/gallon above benchmark futures for December delivery on the NYMEX today, according to the report; the U.S. gasoline crack spread continues to surge above five-year highs seasonally, rising as much as 7.7% to $20.27/bbl today after ending the session at ~$19.79.

Pembroke's 90K bbl/day fluid catalytic converter is said to have been shut unexpectedly earlier this week, although it is not clear what caused the shutdown or when the unit would be restarted.


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