SUNDAY REVIEW / Korner's Review Of Canadian Markets & O&G Related (5)
CRUDE OIL
01/08 16:04 World Oil Pushes Higher As Long Supply Glut Eases
LONDON, Jan 8 - Oil prices crept higher on Friday as traders pondered
whether recent gains spurred by falling crude stocks could turn into
a fully fledged recovery.
World benchmark Brent pushed up 22 cents to end at $11.75 a barrel,
over two dollars above 12-year lows recorded in late December.
The cautious upturn follows signs that a glut of unwanted oil that
plagued producers all last year may at last be starting to ease.
Brent flew a dollar higher on Wednesday after the American Petroleum
Institute (API) said the United States had drained nearly 15 million
barrels from its bulging crude stocks. The market also got a small
fillip on Friday from forecasts by the U.S. Energy Information
Administration that U.S. demand for petroleum would jump to an
average 19.25 million barrels per day (bpd) --110,000 bpd higher than
its forecast released last month, and 2.9 percent more than levels in
1998.
London's Energy Market Consultants (EMC) earlier said the year-on-
year stock excess -- which peaked at about 200 million barrels in
the summer -- fell to 70 million barrels at the end of December.
Even assuming normal seasonal temperatures the surplus would be
expected to fall below 50 million barrels by the end of the northern
hemisphere winter, EMC said.
As spare supply wanes, sellers are starting to obtain higher prices
on the day-to-day physical cargo market.
And improved prices for prompt delivery cargoes would in turn erase
the economic incentive for companies to put oil into storage tanks.
This would be a sea change from the pattern that became entrenched
last year when consistently weak near-term prices sent excess oil
flooding to inventories.
Severe delays to exports from Nigeria, where pre-election protests
are disrupting production, has further cut buyers' options.
Yet with stocks still 200 million barrels in surplus against the
better balanced position of two years ago, prices are still
vulnerable to further losses.
The lingering threat of oversupply means analysts are calling for
additional price supporting measures by leading oil producers who
have so far garnered little reward from pledged output cuts.
OPEC oil production rose to its highest in five months in December as
a flagging campaign to revive oil revenues ran afoul of rising Iraqi
exports.
Output from the cash-pressed cartel edged up by 20,000 barrels per
day to 27.45 million bpd.
Taking account of higher Iraqi exports, net OPEC compliance with its
2.6 million bpd output cut package dived to less than 50 percent.
The group is due to meet in March for its first gathering since a
tetchy November meeting when long-standing tensions between key
players Saudi Arabia, Venezuela and Iran scotched any agreement.
Kuwait has led calls for the group to convene an earlier meeting. But
Venezuelan policy may not become clear until president-elect Hugo
Chavez takes office on February 2.
01/08 16:41 NYMEX Crude Ends Down But Above $13
NEW YORK, Jan 8 - Front-month crude futures on New York Mercantile
Exchange ended lower but above $13 a barrel Friday in light trade
marked by sporadic profit taking, traders said.
The February crude contract settled at $13.07, down two cents, after
last trading at $13.02. The contract has advanced $1.02 from last
week, aided by a huge 15-million-barrel stockdraw in U.S. crude
inventories reported on Tuesday and a technical breakout above $13 on
Thursday.
In the afternoon Friday, February crude climbed to $13.25, equaling
Thursday's high, but a push to move the market higher fizzled out,
traders said.
However, support appeared intact just below $13, limiting the day's
losses in the technically-driven session, they said. NYMEX crude's
recent gains have been "mildly constructive," but the upward movement
may be limited, said Hans Kashyap, president of Bethesda, Md.,-based
Analytics Research Corp., which tracks the market's technical
movements.
"I wouldn't be too optimistic, the upside is limited to about $14.50
a barrel in the next several weeks," he said. After that, prices
would react back down to $12 to $11.50 and holdthere before heading
up again, he said.
Heating oil futures ended the week with modest gains as latest
weather forecasts showed that the arrival of warmer weather next week
would be delayed, traders said. February heating oil settled at 36.11
cents a gallon, up 0.32 cent.It last traded at 36.05, beneath its
session peak of 36.60 cents.
Gasoline futures were bearish as the day's low-volume business saw
players selling the product and buying heating oil, traders said.
February gasoline settled at 38.19 cents a gallon, down 0.67 cents
after posting a last trade at trade at 38.10 cents, a touch above its
session low of 38.00 cents. The contract hit a session high of 39.10
cents.
On top of the big drop in U.S. crude inventories, a report late
Friday projecting a higher demand for petroleum products in the U.S.
added to bullish sentiment. The Energy Information Administration,
the statistical arm of theU.S. Department of Energy, said U.S. demand
for petroleum would riseto an average of 19.25 million barels per
day. That would be 110,000 bpd higher than its forecast in December
and 2.9 percent higher than the level in 1998.
Earlier in the week, talk about a possible meeting among some members
of the Organization of Petroleum Exporting Countries was supportive.
Kuwait said it was seeking a meeting ahead of the regular March
meeting of OPEC, but it was not clear whether an early meeting could
be held as the Venezuelan President-elect, Hugo Chavez, was to take
office only on February 2.
OPEC heavyweights Venezuela and Saudi Arabia and non-OPEC producer
Mexico spearheaded last year's agreements for producers to cut output
by 3.1 million barrels per day. Of that total, OPEC pledged 2.6
million barrel.
But OPEC efforts have been undercut by rising Iraqi exports. Iraq, an
OPEC member, is not part of the output-cut agreements. Under a U.N.-
sponsored "oil-for-food" program, however, it is allowed to export a
limited amount of oil to buy food, medicines and other necessities
for Iraqi citizens.
-------------------CRUDE OIL-LIGHT SWEET---------------------
NYM - 1,000 bbl_dollars per bbl.
CONTRACT
OPEN HIGH LOW SETTLE CHANGE HIGH LOW
Feb 99 13.01 13.25 12.78 13.07 -.02 20.79 10.75
Mar 99 13.05 13.25 12.84 13.10 -.01 20.40 11.10
Apr 99 13.10 13.29 12.96 13.17 -.05 20.79 11.35
May 99 33.13 13.36 0.01 13.29 -.05 20.79 0.01
Jun 99 13.27 13.47 13.20 13.41 -.05 20.42 11.48
Jul 99 13.50 13.58 13.41 13.54 -.05 20.40 12.20
Aug 99 13.62 13.75 13.52 13.66 -.06 20.04 12.51
Sep 99 13.73 13.78 13.67 13.78 -.07 20.33 12.76
Oct 99 13.79 13.90 13.79 13.90 -.08 20.14 12.97
Nov 99 13.86 14.03 13.86 14.03 -.09 20.60 13.17
Dec 99 14.05 14.26 14.05 14.16 -.10 20.34 13.37
Feb 00 14.42 14.42 14.42 14.42 -.10 20.16 13.78
Jun 00 15.00 15.00 14.85 14.85 -.13 20.34 14.41
Dec 00 15.50 15.55 15.46 15.48 -.16 20.10 15.19
Feb 01 15.70 15.70 15.64 15.64 -.17 17.37 15.41
Est. Sales 122560
-------------------------HEATING OIL-------------------------
NYM - 42,000 gal_cents per gal
CONTRACT
OPEN HIGH LOW SETTLE CHANGE HIGH LOW
Feb 99 35.75 36.60 35.35 36.11 +.32 58.50 32.40
Mar 99 36.30 37.00 35.90 36.58 +.24 58.81 33.10
Apr 99 36.60 37.10 36.30 36.83 +.24 59.00 33.70
May 99 36.75 37.20 36.70 37.13 +.24 54.56 34.30
Jun 99 37.50 37.68 37.25 37.68 +.24 52.75 35.05
Jul 99 38.05 38.43 38.05 38.43 +.24 52.90 35.85
Aug 99 39.10 39.30 39.10 39.18 +.19 50.55 36.70
Sep 99 39.60 39.98 39.60 39.98 +.14 52.00 37.60
Oct 99 40.75 40.78 40.59 40.78 +.09 52.00 38.45
Nov 99 41.50 41.58 41.50 41.58 +.04 52.44 39.34
Dec 99 42.10 42.50 41.95 42.43 +.04 52.70 40.20
Jun 00 42.25 42.53 42.25 42.53 -.01 42.85 42.25
Jul 00 42.80 43.03 42.80 43.03 -.01 43.03 42.80
Est. Sales 30536
------------------------UNLEADED GAS--------------------------
NYM - 42,000 gal_cents per gal
CONTRACT
OPEN HIGH LOW SETTLE CHANGE HIGH LOW
Feb 99 38.00 39.10 38.00 38.19 -.67 52.75 34.10
Mar 99 39.40 40.15 39.30 39.45 -.43 52.30 35.60
Apr 99 42.25 42.70 42.10 42.26 -.32 55.00 38.70
May 99 43.20 43.70 43.03 43.03 -.30 55.83 39.90
Jun 99 43.50 43.75 43.50 43.55 -.28 54.70 40.70
Jul 99 44.00 44.25 43.80 43.80 -.33 52.60 41.20
Est. Sales 25747
01/08 16:57 U.S. Cash Crude - Afternoon Trade Light, Steady
NEW YORK, Jan 8 - The U.S. cash crude grades were mixed on Friday as
the futures market dipped only two cents to settle at $13.07 per
barrel after rising as high as $13.25 earlier in the day.
In a flurry of activity on Friday morning, both major Louisiana
grades strengthened but by the afternoon had settled back to less
modest gains. At close on Friday, both were up three cents from
Thursday.
The strength of Louisiana Light Sweet/St. James and Heavy Louisiana
Sweet/Empire were said to be caused by the slackening of West African
crudes coming to the U.S. Gulf and the relative strength of Dated
Brent.
Traders said they had heard of no Brent deals on Friday to the U.S.
Gulf. Cash West Texas Intermediate delivered in February at Cushing,
Oklahoma was basically unchanged as the value of the front month
February futures contract on the New York Mercantile Exchange lost
only two cents to down slightly as a result of the two-cent drop to
$13.07.
The March contract settled down one penny to $13.10 per barrel. At
the opening bell on Monday, the February NYMEX contract was at $12.05
per barrel. This means the NYMEX front-month contract $1.02.
On Friday, Royal Dutch/Shell <RD.AS> <SHEL.L> said it was still
planning maintenance work on its Nigerian Forcados crude export
terminal from February 6-16 despite delayed January shipments.
Strong refiner buying helped Light Louisiana Sweet/St. James rise six
to seven cents in value in relation to the benchmark WTI/Cushing in
the morning. LLS was done as strong as 5 cents over the WTI/Cushing.
It was also done at even, 2 cents and 3 cents over the benchmark. By
the end of the day, it was pegged at minus 3 to plus 2 cents to
WTI/Cushing.
Its sister grade Heavy Louisiana Sweet/Empire was done in the morning
at minus 15 cents to the benchmark. West Texas Sour/Midland was
pegged at -$1.05/$1.02, up two cents;West Texas Intermediate/Midland
at -19/-17 cents, unchanged; EugeneIsland -$1.11/-$1.05, up three
cents; and the February/March roll -4/-2, down two cents.
01/08 17:49 U.S. Cash Products-Kerosene Keeps Climbing, Jet-54Holds
NEW YORK, Jan 8 Kerosene continued marching higher Friday afternoon
on demand for blending into low sulphur diesel and heating oil, amid
cold weather in the Midwest and Northeast, and a lack of Russian gas
oil in the top consuming New York Harbor, market traders said.
Jet 55 grade or kerosene, "is up across the board...and should stay
firm as long as we continue to see the colder weather," a Gulf Coast
trader said.
Russian gas oil cargoes had arrived steadily into the Harbor
throughout November and December, but only one cargo is water bound
at the moment, and not due to arrive in the hub until January 1
traders said.
That cargo will quickly be swallowed by short positions in the market
spurred by the recent cold weather, traders said.
Meanwhile, New York 54-grade jet fuel, which kero pulled up 1.50 cent
in the morning, was content to hold those gains in theafternoon.
On NYMEX futures, February gasoline was the big loser closing at
38.19, down 0.67 cent. Crude oil futures dipped just two cents on
profit taking, closing at $13.07 a barrel.
And heating oil closed higher on forecasts that warmer weather for
next week would be delayed. Heat closed at 36.11 cents a gallon, for
a gain of 0.32 cent.
NEW YORK HARBOR
Harbor 55-grade jet fuel continued to climb on blending demand, but
airline-quality 54 grade jet fuel was content to hold morning gains,
traders said.
Meanwhile, gasoline and heating oil differentials gained in quiet
trade. Jet 55, or kerosene, traded a half penny higher at 3.75 and
4.00 cents premium to the heating oil screen as only one cargo of
Russian gas oil was due for arrival in the Harbor. That cargo is not
due until January 16, traders said. Jet 54-grade rose held its 1.50
cents gains to trade at 2.25 centspremium to heat screen.
Prompt heat traded slightly stronger at 0.20 cent discount to the
Feb. screen.
Meanwhile low sulphur diesel lost recent gains and was pegged at
0.00/0.30 cent premium to the screen.
Prompt regular M5 gasoline was steady in thin trade at 2.10/1.95
cents under the screen. The premium V grade was pegged at 0.50/0.75
cents over the print. Reformulated regular A5 was pegged at 2.00/1.75
cents under February,and premium RFG at 0.75 cent under.
GULF COAST
The refining hub's focus was on jet-kerosene which rose up to a penny
per gallon as cold weather spurred demand for the blending fuel.
The 55-grade was up to 2.00 cents over the print, pulling along the
54-grade by 25-50 points to a 0.50/0.60 premium.
But trade on the rest of the cash market was thin with differential
sholding steady to a shade firmer except for conventional premium C-
grade gasoline which extended its gains ahead of scheduling.
The deadline on the front 2 cycle regular premium V-grade gasoline
saw talk up to 3.00 cents regrade to the M-grade, up 25 to 50 points.
The prompt regular M-grade was just a shade firmer at a 4.10/4.00
cents discount from morning trade at 4.20 and 4.15, with the back 3
anys pegged at 5-10 point higher.
On the reformulated grades, regular A5 was pegged at a 3.50/3.25
cents discount and premium at 0.50 cents under the print. Prompt back
2 cycle heating oil was steady at 3.00/2.80 cents discount to the
Feb. screen while low sulphur diesel was steady around a 2.00 cents
discount.
MIDCONTINENT
Jet fuel edged up in Chicago as the cold weather supported demand for
blending, spurring a bullish tone across the hubs, trader said.
But talk and trade was thin on Friday and the gains were largely
notional.
"There was a lot of hype on the NYMEX and on the Chicago market
during the week but people are relaxed today," a trader said.
Chicago jet fuel was pegged a quarter cent up at 1.75/2.005 cents
over and Group at the high end of its range at 1.25 cent over. But
trader said the cold weather was also putting a cap on Chicago
gasoline demand and prices. Amid thin talk, differentials were
pegged in a wide range at 2.50/2.00 cents discount to the print,
dragging down low sulphur to 1.20/0.75 cent discount, traders said.
Group Three held steady, finding a floor after shaking off any
remaining bullish impact of the week's early talk of Citgo's buying
or the Capline shutdown -- low sulphur diesel at a 0.75/0.50 cent
discount, gasoline at 2.50/2.25 cents under the screen and premium
gasoline at a 3.25/3.50 cent regrade.
01/08 17:51 North Sea Brent - Feb Down 8 Cents In Late U.S.
NEW YORK, Jan 8 North Sea Brent was mixed in late trading Friday in
the United States.
February Brent was eight cents weaker, at $11.67 a barrel, while
March Brent was unchanged at $11.50 a barrel, traders said. The
February futures contract on the International Petroleum Exchange
settled at $11.75 earlier Friday.
Although no full cargoes of cash Brent traded on Friday, activity
included 200 lots February cash Brent partial cargoes at $11.65, 200
lots at $11.67, 300 lots at $11.68 and 100 lots at $11.69.
Traders also said that 400 lots March cash Brent partial cargoes
traded at $11.50 in the aftermarket.
The Brent February-March spread traded once at plus 15 cents and
twice at plus 16 cents, traders said.
01/08 18:06 U.S. Foreign Crudes - Uncertainty MuddiesCusiana
NEW YORK, Jan 8 - Opinion is still mixed in the U.S. market for
imported crudes on Friday whether the U.S. market would follow
Europe's bull run.
"Will it follow? The (U.S. refining) margins don't really support
chasing (Europe)," said one U.S.-based trader. "There is all kinds
of 2 oil (heating oil)," the trader noted.
But other traders were more optimistic, and one refiner who had
reportedly paid up a discount between $1.15 and $1.25 to U.S.
benchmark West Texas Intermediate for Cusiana, was heard offering out
the Colombian sweet crude at an even steeper discount of $1.10 to
$1.00 under WTI.
The hesitation was also apparent in the U.S. futures market.
The front month February contract on the New York Mercantile Exchange
settled two cents weaker at $13.07 after a volatile day. The NYMEX
remained stubbornly in contango, meaning that prompt months were
still trading at a discount to later months. A contango market
indicates that supply of crude oil remains plentiful in the United
States.
On London's International Petroleum Exchange, however, front-month
February futures settled 20 cents higher. The IPE moved into
backwardation on Thursday, with prompt contract fetching a premium to
later contracts. That premium, indicating than a long entrenched
oversupply may be over, widened out further on Friday, with February
trading 25 cents higher than March.
LATAM -
COLOMBIA, VENEZUELA, ARGENTINA
-- A U.S. trader said on Friday that it had bought up all three
cargoes of Cusiana that had been awarded earlier this week by
Colombia's state-owned Ecopetrol and was offering them out around
$1.00 to $1.10 under WTI.
Market talk put the prices at which the cargoes were awarded at
between $1.20-1.25 under March WTI, although it was unclear which
company received them and resold them to the trader at discount
between minus $1.15-1.25. Bids on the cargoes, scheduled to load
February 5-9, 11-15, and 15-19 were due on Wednesday.
But sentiment for the light, sweet Colombian crude was mixed on
Friday, as one trader said a late January cargo of Cusiana had been
sold at minus $1.30.
-- Talk on Colombia's medium-heavy Cano Limon remained mostly thin.
The grade remained valued at $2.45 under WTI, where the last deal was
heard done. One seller of Cano valued the grade closer to minus$2.00.
-- Traders said February barrels of Venezuela's main sour crude,
Mesa/Furrial were said to be on offer at WTI minus $2.45.
NORTH SEA, WEST AFRICAN
-- Volatile trading on the NYMEX, and continued strength in European
markets narrowed the trans-Atlantic arbitrage, a good indicator of
the profitability of bringing North Sea crudes into U.S. markets, to
a mere $1.27 a barrel on Thursday.
Also deterring European imports are stronger prices for prompt, or
Dated Brent, the international benchmark. Although no deals for
prompt Brent were heard on Friday, traders said bids for Dated were
as high as 10 cents under February Brent.
And as what U.S. traders were calling a "run" in European prices
continued, it seemed even less likely that European demand would
leave much crude for U.S. markets. -
- Earlier this week, two U.S. Gulf refiners bought up a cargo each of
Brent scheduled for arrival in the U.S. February 18-20. Although the
cargoes were initially thought to be part of a VLCC arriving in mid-
February, traders said on Friday that the deal was more flexible, and
could involve inventory or even other sweet grades. The Brent was
sold at February WTI minus 65-55 cents.
-- West African differentials continued moving higher, but U.S.
traders said activity here was not as busy as in Europe, where a late
January cargo of Nigerian Qua Iboe was sold at 29 cents over Dated
Brent. Other Nigerian light sweets are said to be valued at similar
strong premiums. Bonny Light was said to be around plus 35 cents.
Some of the strength in West African crudes is a result of delays of
two to three weeks at Shell's 400,000 barrel per day (bpd) Forcados
terminal in Nigeria announced earlier this week.
IRAQI
-- Differentials for Iraq's sour Basrah Light surged higher on
Friday, with talk of a deal at $2.20 under April WTI, another 10
cents stronger. Basrah is said to have strengthened by about 20-25
cents this week, as sour crudes are supported by continued production
shut-ins in Canada, and waning U.S. production, traders said.
Most February barrels of Basrah have all been sold, and traders said
bids for the Iraqi crude were currently around $2.00 under April WTI.
01/08 20:54 U.S. West Coast ANS Prices Up As New York Rises
LOS ANGELES, Jan 8 - Prices for U.S. West Coast waterborne crudes
rose on Friday on the back of slight gains in benchmark West Texas
Intermediate (WTI) crude.
While the official discount for Alaskan North Slope (ANS) crude
remained steady at $1.95 a barrel under February WTI, one refiner
said they had closed a deal on Friday to buy 180,000 barrels of ANS
for February delivery at $1.82.
Traders said the sharply narrower discount of $1.82 reflected the
small size of the shipment, which was well below the 300,000 barrels
for a full cargo.
"You tend to get squeezed when it's not a full cargo," said one
trader familiar with the deal.
One trader said a spate of refinery troubles on the West Coast had
softened demand for ANS as those facilities cut back their
consumption of crude.
On Friday, Chevron said it had closed an 80,000-bpd crude unit at its
El Segundo, Calif. refinery for minor repairs. The unit was expected
to be down for one or two days, a Chevron spokesman said.
Earlier in the week traders said Atlantic Richfield Co. (Arco) had
shut down a hydrocracker at its Carson, Calif. refinery.
Outright prices for February ANS on the West Coast rose to
$11.03/11.19 a barrel on Friday, compared with $10.96/11.12 on
Thursday. Bids for February WTI rose seven cents a barrel to $13.03 a
barrel.
In the broader markets, February crude oil futures on the New York
Mercantile Exchange (NYMEX) edged two cents lower in light trading
marked by sporadic profit-taking, traders said.
The February crude contract settled at $13.07 a barrel. The contract
has advanced $1.02 from last week, aided by a huge 15 million-barrel
stock draw in crude in U.S. crude inventories reported on Tuesday.
01/09 05:15 US Product Outlook-Glut Welcomes Cold, Turnarounds
NEW YORK, Jan 4 - U.S. heating oil prices began the new year on a
higher note, amid heavy snowstorms in the Midwest and freezing
temperatures in the northeast, traders said on Monday.
But traders did not expect the rally on the differentials to the New
York Mercantile Exchange oil futures to hold as the mercury was
expected to rise again while inventories were expected to rise again,
unless refiners cut output amid weak margins and heavy seasonal plant
turnarounds.
"It (the rally) won't hold. Heating oil will come down on its
differential basis but it will be higher on its NYMEX basis on a
technical correction," a Gulf Coast market source said.
While the February heating oil contract settled 0.86 cent per gallon
higher on Monday at 35.14 cents, prompt cash supplies were trading
around half a cent higher on its differentials in the Gulf Coast, New
York Harbor and Chicago trading hubs due to the cold weather.
Heavy snow blanketed much of the U.S. Midwest on Saturday, hitting
Chicago with its worst storm on record while a weaker secondary storm
over the mid-Atlantic states near Washington, D.C., moved northeast
depositing rain or freezing rain along the East Coast.
Arctic air masses will continue to build over northwestern Canada and
move southeastward into the northern, central, and eastern US but a
significant storm may track through the eastern Great Lakes late in
the period, however, allowing a brief warmup over portions of the
East, the Weather Services Corporation forecast.
"There will be a delayed reaction to the colder weather as its been
so snowy, people can't take delivery yet," a Gulf Coast trader with a
major oil company said.
"But there is still a lot of inventory and the market depends on how
the weather goes," he added.
The American Petroleum Institute last week reported a bearish
products build with distillates stocks rising 1.7 million barrels to
152.5 million in the week ending Dec. 25 or a hefty 21 million higher
than a year ago.
"Stocks are still the highest in December for at least 11 years. Any
stock build now is bearish, but especially this week, as market was
expecting a draw due to Arctic weather.
No.2 stocks are still lapping at tank-tops," an analyst said.
The outlook for gasoline was also dampened by a similarly huge stock
build of 1.7 million barrels to 211.4 million -- the the Gulf Coast
alone responsible for 3.0 million of that build while the northeast
however drew 1.2 million as the arbitrage from the southand Europe
remained closed.
A glitch at Amerada Hess's 62,000 bpd catalytic cracker at Port
Reading, N.J. around Christmas prompted the refiner to buy all grades
of gasoline and provided the relatively "tighter" northeast with a
prop, traders said.
But the glutted Gulf market ignored a fire at Exxon Corp's 37,000
barrel per day flexi-coker at Baytown, Texas on Dec. 30.
"We might see some holiday-driving pull, probably in the next week or
two, then low-demand January will take over. Gasoline supply looks
much, much more than "comfortable" especially with January coming
up," an analyst said.
The only supportive factor for the oversupplied products market was
"more downtime than usual" at U.S. refineries, traders said.
Among the refiners with turnarounds is independent Valero Corp
(VLO.N) which has planned a major shutdown at its Corpus Christi,
Texas refinery which produces around 117,000 barrels-per-day of
gasoline and 35,000 bpd of distillates.
The plant will be closed January 9 to February 10 for works including
increasing its 76,000 bpd heavy oil cracker capacity to 80.000 bpd.
"The turnarounds are due to the weak margins and the time of the
year," said a trader with a refinery.
Refining margins for WTI on the Gulf Coast began the year on a weaker
note, dropping below $1.00 per barrel in the red on Monday, compared
to an average of $0.81 cents negative in December and $0.68 in
November. Refinery runs according to the API were up 2.3 percent to
96.8 percent.
"The increase was mostly on the Gulf Coast, now said to be running at
100 percent. I now expect runs to continue near this level until the
new year, when some early turnarounds and run cuts are likely unless
refining margins improve," an analyst said.
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