29 October 2012 16:36 [Source: ICIS news]
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HOUSTON (ICIS)--Bids and offers for ?xml:namespace>
US November benzene spot prices early in the day were discussed at $4.85-5.35/gal ($1,452-1,601/tonne, €1,118-1,233/tonne) FOB (free on board), a wider range from $4.95-5.15/gal FOB the previous session, as offers were stronger and bids were lower.
Some traders said they expected benzene to rise following higher prices in Europe and
Despite the active bid/offers for benzene, other aromatics markets in toluene and xylene were quiet.
Already, US gasoline futures spiked nearly 10 cents/gal in morning electronic trading as Hurricane Sandy tightened an already thin supply situation.
Futures were at $2.7936/gal, up 9.45 cents from the previous close, during the mid morning.
Gasoline stocks in the east coast were at 48.1m bbl for the week ending 19 October, down 9.1% from the same period a year ago, according to the US Energy Information Administration (EIA).
Energy analyst Phil Flynn said, "The shutdown of major cities and the expected power outages may take a toll on demand unlike anything we have seen before. The impact on demand may not last for hours but more than likely for days. This could be the biggest demand destruction event in history."
The east coast is the biggest consumer of gasoline at around 3.1m bbl/day, according to the EIA. The midwest is the second largest consumer at 2.5m bbl/day.
The east coast produces only about 40% of the gasoline it consumes, while the rest is supplied through pipelines from the US Gulf coast and imported from
Phillips 66 shut down its 238,000 bbl/day Bayway Refinery in
NuStar Energy shut down its 74,000 bbl/day in Paulsboro refinery in
Hess Corporation planned to cut rates at its 70,000 bbl/day plant in Port Reading, New Jersey, according to the US Department of Energy (DOE), which quoted other news reports.
Philadelphia Energy Solutions reduced rates at its 335,000 bbl/day refinery in
The company later plans to shut down the
PBF Energy has reduced rates at its 182,200 bbl/day refinery in
According to the US Energy Information Administration, 6.5% of US refining capacity lies in
($1 = €0.77)
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Additional reporting by Bobbie Clark, Tracy Dang and Al Greenwood
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