Analysis by Dr. Nancy Yamaguchi
The Energy Information Administration (EIA) released its weekly data on diesel and gasoline retail prices for the week ended March 20, 2017. Prices for both fuels declined during the week, though gasoline retail prices remained far more robust than diesel prices. For the current week ended March 20, diesel prices fell by 2.5 cents (cts) to an average price of $2.539/gallon.
PADD 1 retail diesel prices declined 1.7cts to $2.60/gallon. In New England, prices fell 0.6cts to $2.622/gallon. Central Atlantic diesel prices dropped by 2.3cts to average $2.738/gallon. Lower Atlantic prices declined by 1.4cts to average $2.498/gallon. Overall PADD 1 prices were 42.8cts/gallon above their prices for the same week last year. PBF Energy will be shutting a 46 kbpd diesel hydrotreater at its 160 kbpd Paulsboro, New Jersey, refinery, for a three- to four-week maintenance period. Phillips 66’s 238 kbpd Bayway, New Jersey, refinery is running at very low throughput. It has met with delays that will push back the restart by another 8 – 10 days. It was scheduled to restart in mid-March, including its crude unit, its 145 kbpd cat cracker, its cat reformer and its diesel hydrotreater.
In the Midwest PADD 2 market, retail diesel prices fell 2.7cts to average $2.464/gallon. This price was 37.4cts/gallon above its level for the same week last year. CITGO restarted the diesel hydrotreater at its 167 kbpd Lemont, Illinois, refinery, which allowed resumption of full throughput.
In the Gulf Coast PADD 3, retail diesel prices dropped 3.9cts to $2.38/gallon. This price was 38.9cts higher than in the previous year. Shell announced that it would close the 60 kbpd hydrocracker at its 340 kbpd Deer Park, Texas, refinery for a planned overhaul. Motiva announced that it would be shutting down its hydrocracker and cutting crude runs at its 230 kbpd Convent, Louisiana, refinery for a period of around four weeks. This is to finalize repairs on a fire-damaged section that has been closed since August. As noted in the section following on gasoline, LyondellBasell’s 110 kbpd cat cracker was shut because of a fire on Wednesday.
In the Rocky Mountains PADD 4 market, retail diesel prices declined 2.7cts to $2.59/gallon. This price was 53.4cts higher than in the prior year. Suncor’s 103 kbpd refinery at Commerce City, Colorado, was closed because of a full-plant power failure. Safe startup was expected to take several days.
In the West Coast PADD 5 market, diesel pump prices dropped by 2.0cts to average $2.826/gallon. This price was 51.5cts above its level last year. Prices excluding California fell 4.3cts to $2.702/gallon, which was 52.3cts above the retail price for the same week last year. California diesel prices declined by a more modest 0.8cts to an average price of $2.928/gallon, 51.0cts higher than last year’s price. Prices were influenced by downtime at one of the hydrocrackers (20 kbpd capacity) at the 77 kbpd Phillips 66 Rodeo refinery near San Francisco.
U.S. retail gasoline prices declined by a modest 0.2cts to $2.321/gallon for the week ended March 20. This price was 31.4cts higher than for the same week in 2016.
In the East Coast PADD 1, prices for gasoline declined 0.7cts to $2.266/gallon. This price was 32.8cts higher than last year’s price. Prices edged up 0.02cts in New England to $2.261/gallon. Central Atlantic market prices declined by 0.6cts to $2.380/gallon. Prices in the Lower Atlantic market dropped by 0.8cts, to bring prices to an average of $2.183/gallon, 25.3cts higher than last year’s average price. PBF Energy’s cat reformer at its 190 kbpd Delaware refinery was briefly down during the week.
In the Midwest PADD 2 market, gasoline prices rose 0.4cts to average $2.221/gallon. Gasoline pump prices were 28.2cts higher than they were one year ago. A fire at PBF Energy’s 188 kbpd Toledo, Ohio, refinery shut down the plant, and it completed a restart during the week.
In the Gulf Coast PADD 3 market, gasoline prices declined 0.3cts to average $2.072/gallon. Prices for the week were 26.7cts higher than for the same week in 2016. LyondellBasell’s Houston refinery continues to work on repairs to the cooling unit at its 110 kbpd cat cracker, which was seriously damaged by a fire. This unit is likely to be out of commission until the middle of April. Total resumed operation of the 80 kbpd cat cracker at its 240 kbpd refinery in Port Arthur, Texas.
In the Rocky Mountains PADD 4 region, gasoline prices edged down 0.1cts to average $2.301/gallon. This price was 40.2cts higher than at the same time in 2016. Supplies had been constrained by the closure of Plains All-American Pipeline’s 100 kbpd Wahsatch Pipeline, which was closed for nearly a month after a landslide in February. Tesoro announced that it has resumed full operation at its 63 kbpd refinery in Salt Lake City.
In the West Coast PADD 5 market, retail gasoline prices decreased 0.2cts to an average price of $2.849/gallon. This was 36.9cts higher than at the same time a year ago. Excluding California, prices rose slightly, by 0.2cts to an average of $2.586/gallon. This was 45.4cts higher than at the same time in 2016. California prices declined 0.4cts to an average pump price of $3.001/gallon. Prices were 32cts higher than last year’s price for the same week. Los Angeles prices eased by 1.1cts to average $3.026/gallon. San Francisco pump prices rose by 2.0cts to average $3.049/gallon, 37.9cts above last year’s price.
Seattle prices increased 0.5cts to average $2.833/gallon, 56.0cts higher than prices one year ago. Tesoro restored operations at the 72 kbpd cat cracker and adjunct units at its 167 kbpd Golden Eagle refinery at Martinez, California, which had been closed because of a mechanical failure.
