31 July 2013 22:00 [Source: ICIS news]
HOUSTON (ICIS)--US refiner and chemical company Phillips 66 has cut back on its crude from the North Dakota Bakken and increased imports at its New Jersey refinery as Bakken crude gets more expensive, a company executive said on Wednesday.
“[W]e have reduced our take on the Bakken to the east coast as we have adjusted our crude selection [and are] replacing that with more competitive barrels from imports,” said Greg G. Maxwell Phillips 66’s executive vice president and chief financial officer during the company’s second quarter earnings conference call.
Discounts of domestic crudes, such as crude from the Bakken, have narrowed to less than $3/bbl, from more than $20/bbl in the first quarter of 2013.
This has pressured refiners who process more domestic crude to look to increased imports.
“However we are mindful of the current market, and we adjust for crude slates accordingly,” said Greg C. Garland, the company’s CEO.
“But fundamentally, we still see that inland crudes from Canada and North America will be advancing, and we are going to continue to find ways to increase our ability to run those,” he added.
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