U.S Gasoline getting leaner at U.S pumps – XOM, SU
Northern, WI 04/09/2013 (gdpinsider) – Crude futures have dropped the most in six months and U.S retail gasoline prices followed suit. The prices currently stand at an a three-year low for this season. The U.S Energy Information administration website stated that pump rates for regular, unleaded gasoline dropped by 1 percent or 3.7 cents and was now $3.608 per gallon. Gasoline prices have dropped in every region with the exception of the Rocky Mountain region. Two-third of the motor fuel costs are attributed to oil which had declined by 4.7 percent in the last week. This had been its biggest drop since the period ending Sep 21. The President of the energy consulting WTRG Economics which is located in London, Arkansas, said that last weeks crude prices drops were attributed to refining operations.
Maintenance work delay
There is a distinct possibility that the prices will keep dipping steadily for upto another week and may drop by another 6-7 cents per gallon. In the seven days that ended on March 29, there was a 0.7 percent increase in crude stockpiles which had touched 388.6 million gallons which has broken a 22-year record. Just last week there was probably an addition of 1.5 million barrels which was 0.4 percent increase. Exxon Mobil Corporation (NYSE:XOM) (Current: $88.75, Up by 0.17%)’s Chalmette factory had been going through a month-long scheduled maintenance program. This refinery has the capacity to turn out upto 700 barrels per day and its maintenance had got extended by a week. It had been scheduled to restart its production by the end of last week said a person who had inside information.
Motiva Enterprises LLC operates a 600,000-barrel-per-day unit at its refinery in Port Arthur, Texas. This is America’s largest refinery and is crude unit will be shut for an additional week for repair-work. The original turnaround time had been 38 days when the equipment has been moved out of service in the middle of February. Across the Gulf Coast, retail gasoline prices have been on the decline and they had dropped to $3.434 per gallon after a 4.6 percent drop. It was only in Rocky Mountain that gasoline prices hit $3.523 per gallon after a 2.6 percent rise. The Commerce city-based refinery belonging to Suncor Energy Inc (NYSE:SU) (Current: $28.66, Up by 0.77%) shut one of its crude units for almost a week-long repair schedule.