US Products Outlook-USG mogas seen firm on Deer Park outage
NEW YORK, May 11 (Reuters) - Gasoline is seen getting a near-term fillip in the U.S. Gulf Coast following reported supply disruptions at a major regional refinery in the run up to the summer driving season, traders said on Monday.
Prompt gasoline differentials in the Gulf Coast climbed 2 cents per gallon on Monday after Shell oil said its 332,000 barrel-per-day Deer Park refinery has experienced disruptions to production after being hit by a power outage during the weekend. [ID:nN11533489]
"The selling that got started overnight is done ... there are some refinery issues, particularly the outage at Shell's Deer Park refinery in Texas," said Tom Knight, a trader with Truman Arnold, in Texarkana, Texas.
The Deer Park refinery is working to resolve the situation as soon as possible, but anticipates it will not achieve normal rates for several days, the company said in a statement.
"The whole refinery is down from what I hear," said a Houston-based oil products trader.
In the New York Harbor, major regional refinery gasoline and other unit restarts are set to cap or pressure values in the hub, traders said on Monday.
Irving Oil said on Monday it had begun the restart of the gasoline-making fluid catalytic cracking unit after maintenance at its 300,000-bpd refinery in Saint John, New Brunswick, which exports about 100,000 bpd of motor fuel to the Northeastern U.S. market. [ID:nN11525588]
Meanwhile, the return of units continues at Valero's 210,000-bpd refinery in Delaware City, Delaware, with the largest U.S. refiner saying Monday an 18,0000-bpd hydrocracker was in restart, joining a crude unit and gasoline-making FCC following a plantwide shutdown. [ID:nN11537946]
"The market is certainly not following the momentum of last week," a New York Harbor gasoline trader said, referring to the last week's gains in motor fuel differentials in the hub. Continued...
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