Gasoline Advances as Hess Says Shutting Port Reading Refinery

[Purveyor]

By Barbara Powell - Jan 28, 2013
Gasoline rose to the highest level since October after Hess Corp. (HES) said it will shut the Port Reading, New Jersey, refinery at the end of February.

Futures rose the most since Dec. 26 as Hess said it plans to sell its terminal network and leave the refinery business. The network includes 28 million barrels of storage at 19 terminals on the East Coast. The 70,000-barrel-a-day refinery’s fluid catalytic cracker makes gasoline and components for blending heating oil.

“Hess consists mainly of a cat cracker that produces approximately 50,000 barrels a day of gasoline that supplies the Northeast,” said Andy Lipow, president of Lipow Oil Associates LLC in Houston. “Its shutdown will particularly impact summer supplies.”

Gasoline for February delivery rose 6.17 cents, or 2.1 percent, to $2.971 a gallon at 11:30 a.m. on the New York Mercantile Exchange. Earlier, it reached $2.9411, the highest intraday level since Oct. 12. Volume was more than double the 100-day average for the time of day.

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http://www.bloomberg.com/news/print/2013-01-28/gasoline-advances-as-hess-says-shutting-port-reading-refinery.html

[liberal N proud]

1. If the prices fall below the oil companies expectations, they shut down production

It is highway robbery.

[Purveyor]

4. Hope the 'we need to build more refineries" crowd reads this. eom

[Purveyor]

2. Just like clockwork, our local MI prices jumping to $3.59. Was 3.33 this morning. eom

[hollysmom]

3. sad, I used to work there

I have noticed fewer and fewer Hess stations around the last few years wonder if that has anything to do with it. I can hardly ever find the trucks anymore at Christmas.

[doc03]

5. I never heard of them until last January when they bought rights to my

oil and gas. I saw lots of stations in Florida last spring. They are probably spending all their money buying fracking properties rather than building refineries.
Gas prices have jumped 25 cents here in the last two weeks. About that time I read gas prices would dropping this year, I guess that solves that problem.

[hollysmom]

6. interesting

When I worked there I don't think they did gas, I was only a consultant for a year in the 90's working on a new computer system, such an odd work place. Leon Hess was alive and he liked to smoke, so he had an entire floor reworked with air so that people who smoked could work there separate from non-smokers. Then he got sick and everyone had to go cold turkey at the same time.

Surprised you have not heard of Hess trucks, they are very collectible.

[doc03]

7. Never saw a Hess station in Ohio. XTO (Exxon) bought a lot of the larger tracts for fracking around

here. Hess was buying smaller properties like mine, only a little over an acre. We figure one company will end up buying out all the others eventually.

[FarCenter]

8. That leaves the Bayway refinery as the only gas/oil refinery north of Philly on the Atlantic Coast.

Perth Amboy is an asphalt refinery and doesn't produce gas, heating oil, diesel, etc.

The rest of the tank farms northeast of the Delaware are just terminals distributing pipelined or barged product that is refined elsewhere.