US Cash Products-Refinery outages boost gasoline

NEW YORK, Jan 27 (Reuters) - The physical and futures gasoline markets

on the U.S. East Coast rose on Friday due to an unplanned outage at a

gasoline-making refinery unit, traders said.

ConocoPhillips said it shut the fluid catalytic cracking unit at its

238,000-barrels-per-day Bayway refinery in Linden, New Jersey, to fix a

mechanical problem. Trade sources said the company later determined that the

problem was not as serious as originally expected.

The physical markets retained their strength after news that the FCC would

likely return to service later on Friday, since most marketers had left for the

day.

Any-January F5 RBOB rose a quarter cent per gallon to flat to the February

RBOB futures screen on the New York Mercantile Exchange.

Any-January M4 conventional gasoline also inched up by a quarter cent to

either side of 2.75 cents over.

Early-February gasoline markets rose close to a penny per gallon over the

March RBOB futures contract on the outage, since any disruption would likely

have more impact on that market than that for January, traders said.

U.S. gasoline futures shot to near five-month highs as reports of the Bayway

outage circulated through the market.

The Harbor distillate markets reacted little to the outage, with any-January

heating oil rising a quarter cent to either side of 0.25 cent over the February

heating oil futures contract on NYMEX.

Scheduling Gulf Coast M4 conventional gasoline differentials jumped 3.80

cents in afternoon trading, reverting to a premium to gasoline futures, as

refinery problems in the region combined with cycle changes to lift basis.

Royal Dutch Shell reported flaring and an upset at its 327,000-bpd

Deer Park, Texas refinery on Friday although details of the problem were not

made public.

In the Midwest, cycle 1 Chicago gasoline rose 3.00 cents to 23.50 cents

under the March RBOB gasoline contract as traders ramped up buying ahead of the

weekend following a cycle change on Thursday.

Chicago's latest gains also prompted a rise in Group Three gasoline

differentials, which jumped 0.75 cent to 20.50 cents under February RBOB

gasoline futures.

Traders said basis, which had held on to deep discounts over the past few

months, had started to correct and reverse recent declines as surplus products

got depleted.

For more refinery news, please go to

U.S. GULF COAST

Scheduling cycle 7 M4 conventional gasoline was seen done at 1.50 cents over

March RBOB futures, up 3.80 cents a gallon.

Cycle 7 61-grade ultra-low-sulfur diesel was seen done at 1.50 and 1.60

cents under the March heating oil screen, up about 0.20 cents

Cycle 7 54-grade jet fuel was seen steady at 2.75 cents over, with no trades

reported.

Scheduling Cycle 7 heating oil was seen at 3.70 cents under.

NEW YORK HARBOR

Any-January F5 RBOB was called either side of flat to the screen.

Early February F5 RBOB was pegged at 0.25/0.75 cent over March RBOB futures,

up 0.75 cent.

Ratable February F5 RBOB was talked at flat to 0.50 cent over.

Any-January M4 conventional gasoline was pegged at 2.50/3.00 cents over, up

a quarter cent.

Any-January heating oil was called flat to 0.50 cent over, up a quarter

cent.

Any-January low-sulfur diesel was talked at 0.25/0.75 cent over, also up a

quarter cent.

Any-January ULSD was pegged at 1.75/2.25 cents over, unchanged in thin

trade.

Any-January jet fuel was called either side of 9.00 cents over, unchanged on

the day.

Any-January kerosene was talked at 14.50/15.50 cents over, also unchanged.

MIDWEST

Chicago gasoline gained 3.00 cents to be talked at 23.50 cents under March

RBOB futures.

Chicago ULSD fell a half cent to 14.50 cents under March heating oil

futures.

Group Three gasoline rose 0.75 cent to 20.50 cents under February RBOB

futures.

Group Three ULSD rose a half cent to 8.25 cents under February heating oil

futures.

(Reporting by Jeffrey Kerr and Selam Gebrekidan; Editing by Dale Hudson)

Keywords: ENERGY MARKETS/PRODUCTS

(jeffrey.kerr@thomsonreuters.com)(+1 646 223 6085)(Reuters Messaging: jeffrey.kerr.reuters.com@reuters.net)

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