By BARBARA POWELL
Gasoline futures rose for the first time in seven days as
frigid temperatures caused refinery shutdowns from
Newfoundland to Louisiana.
Valero Energy's Memphis refinery
in Tennessee had a
instruments freeze and units trip offline, a person familiar
with operations said. Similarly, Phillips 66 had an
electrical issue at its Westlake plant in Louisiana,
according to a regulatory filing.
Korea National Oil Corp.s site in Come-by-Chance,
Newfoundland, is trying to restart after an island-wide power
failure over the weekend, company spokeswoman Gloria Slade
told CBC News.
The concern over some of the refinery
issues weve seen as
a result of the brutally cold climate across the continent
has led to buying in the refined products, said Andrew
Lebow, a senior vice president at Jefferies Bache in New
Gasoline for February delivery rose 2.05 cents, or 0.8%, to
$2.6665/gal at 10:32 a.m. Tuesday on the New York Mercantile
Exchange. Trading volume was 29% above the 100-day average.
The frigid air extends across the upper Midwest into the
South and eastward to the Atlantic, said Tom Kines, a
meteorologist with AccuWeather in State College,
Pennsylvania. Today, New Yorks high will struggle to
reach 10 degrees, a day after Central Park hit 50. As of 8
a.m., it was 4 degrees in New York, breaking a record for the
date set in 1896, AccuWeather said.
in Joliet, Illinois, had
unidentified problems with process units because of extreme
cold, according to a filing with the National Response
Those issues are impacting the products, said
Andy Lipow, president of Lipow Oil Associates in Houston.
There will be delays in receiving supplies. But much of
it is offset by the decline in demand due to the poor
The motor fuels crack spread versus WTI widened 68
cents to $18.38/bbl. Gasolines premium to London-traded
Brent crude climbed 63 cents to $5.03/bbl.
The crack spreads are particularly strong when you have
concern about supply, said Lebow.
The average US pump price fell 0.3 cent to $3.314/gal,
according to Heathrow, Florida-based AAA. Prices are 1.7
cents above a year earlier.
Ultra low sulfur diesel for February delivery advanced 1.27
cents, or 0.4%, to $2.9515/gal. Volume was 14% above the
Diesels crack spread versus West Texas Intermediate
crude, a rough measure of refining
profitability, widened 26
cents to $30.26/bbl. The premium over Europe
an benchmark Brent gained 20
cents to $16.90.