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.
Now read: DivGro Pulse: September 2017 »
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