Analysis by Dr. Nancy Yamaguchi

 

The Energy Information Administration (EIA) released its weekly data on diesel and gasoline retail prices for the week ended February 13, 2017. Both gasoline and diesel prices increased during the week.

For the current week ended February 13, diesel prices rose 0.7 cents (cts) to an average price of $2.558/gallon.

PADD 1 retail diesel prices rose 0.8cts to $2.626/gallon. In New England, prices rose by 0.7cts to $2.668/gallon. Central Atlantic diesel prices fell 0.7cts to average $2.763/gallon. Lower Atlantic prices rose by 1.1cts to average $2.519/gallon. Overall PADD 1 prices were 55.7cts/gallon above their prices for the same week last year.

In the Midwest PADD 2 market, retail diesel prices fell 0.5cts to average $2.487/gallon. This price was 57.9cts/gallon above its level for the same week last year. Supply was slightly reduced when Husky Energy closed the 36 kbpd diesel hydrotreater at its 155 kbpd Lima, Ohio, refinery for unplanned repairs.

In the Gulf Coast PADD 3, retail diesel prices increased by 2.1cts, the largest increase among the PADDs, to average $2.424/gallon. This price was 56.6cts higher than in the previous year. Valero closed the 35 kbpd hydrocracker for repairs at its 300 kbpd Corpus Christi, Texas, refinery. On Wednesday, Valero’s 125 kbpd Meraux, Louisiana, refinery suffered a fire and explosion at the 47 kbpd hydrocracker. The refinery crew extinguished the fire, and there were no injuries, but product output will be reduced. The restart did not go as planned.

In the Rocky Mountains PADD 4 market, retail diesel prices increased 0.7cts to $2.522/gallon. This price was 65.6cts higher than in the prior year.

In the West Coast PADD 5 market, diesel pump prices increased by 1.3cts to $2.869/gallon. This price was 67.5cts above its level last year. Prices, excluding California, rose 1.3cts to $2.761/gallon, which was 71.8cts above the retail price for the same week last year. California diesel prices also rose 1.3cts to reach a price of $2.957/gallon, 64.1cts higher than last year’s price. Prices were influenced by mechanical failure of one of the hydrocrackers (20 kbpd capacity) at the 77 kbpd Phillips 66 Rodeo refinery near San Francisco. Tesoro closed the 22 kbpd hydrocracker at its Wilmington, California, refinery.

 

 

U.S. retail gasoline prices declined by 1.4cts to $2.307/gallon for the week ended February 13. This price was 58.3cts higher than for the same week in 2016.

In the East Coast PADD 1, prices for gasoline fell 0.8ts to $2.293/gallon. This price was 53.8cts higher than last year’s price. Prices rose 0.2cts in New England to $2.296/gallon. Central Atlantic market prices fell by 0.8cts to $2.424/gallon. Prices in the Lower Atlantic market dropped by 1.1cts to bring prices to an average of $2.195/gallon, 50.3cts higher than last year’s average price. PBF Energy reopened the 55 kbpd coker at its Delaware City, Delaware, refinery, which had been out of service since January 12. PBF is in the process of restarting its 44 kbpd cat reformer and related hydrotreaters. Philadelphia Energy Solutions has had gasoline-related units offline, including a naphtha hydrotreater, cat reformer and alkylation unit. These began to be restarted in phases during the week, and the process is scheduled to continue in the coming week.

 

 

In the Midwest PADD 2 market, gasoline prices jumped 3.2cts to average $2.213/gallon. Gasoline pump prices were 69.1cts higher than they were one year ago, the largest year-over-year price increase among the five PADDs.

In the Gulf Coast PADD 3 market, prices increased 0.9cts to average $2.080/gallon. Prices for the week were 55.2cts higher than for the same week in 2016. Valero closed its 95 kbpd Three Rivers Texas refinery to repair the crude unit, and it reportedly will be offline until early March. Phillips 66 was forced to close the 105 kbpd cat cracker at its 247 kbpd Belle Chasse, Louisiana, refinery to fix a leak. There was a week’s delay in restarting the unit. Total reduced throughput at its 225 kbpd Port Arthur, Texas, refinery following a fire at the 78 kbpd cat cracker. The 7 kbpd alkylation unit was also closed.

In the Rocky Mountains PADD 4 region, gasoline prices rose decreased 0.3cts to average $2.23/gallon. This price was 53.9cts higher than at the same time in 2016.

In the West Coast PADD 5 market, retail gasoline prices rose 3.2cts to an average price of $2.732/gallon. This was 51.5cts higher than at the same time a year ago. Excluding California, prices rose 0.4cts to an average of $2.487/gallon. This was 54.9cts higher than at the same time in 2016.

California prices jumped 4.9cts to an average pump price of $2.874/gallon, 49.6cts higher than last year’s price for the same week. Los Angeles prices spiked 5.3cts to reach 2.979/gallon. This price was 47.7cts higher than the price for the same week in 2016. San Francisco pump prices increased by 2.9cts to average $2.889/gallon, 45.3cts above last year’s price. Seattle prices decreased 0.7cts to average $2.720/gallon, 62.8cts higher than prices one year ago. Chevron’s 273 kbpd El Segundo, California, refinery was closed for part of the week for repairs to a crude unit. Chevron’s 90 kbpd cat cracker at the 225 kbpd Richmond, California, refinery was also briefly out during the week.