Reports that an "operational upset" in a wastewater treatment plant at BP's 430,000 b/d refinery in Whiting, Indiana, drove up differentials for both gasoline and distillates in the Midwest, market sources said Thursday.
"We had an operational upset in our waste water treatment plant that led to excess total suspended solids being discharged. We are working to address the issue and bring the plant to normal operations as quickly as possible," BP spokesman Michael Abendhoff said in an email.
BP did not specify which units were affected by the incident on Thursday, but market sources said more than one unit may be affected. BP shut a 65,000 b/d reformer at the refinery over the weekend and was working to restart the unit when the latest issue occurred.
The latest refinery incident pushed up differentials for Chicago CBOB, which climbed 1.25 cents to NYMEX September RBOB futures contract plus 8.25 cents/gal. The market for Chicago CBOB was somewhat ill-defined, with the sellers wanting to collect a 10 cent premium to the NYMEX September RBOB futures contract.
In Group 3, V-grade suboctane also ended stronger, boosted in part by uncertainty in the Chicago market. V-grade suboctane rose 1.5 cents/gal to NYMEX September RBOB plus 5.75 cents/gal.
Midwest ULSD prices rose after the news, with Chicago ULSD heard to trade at NYMEX September ULSD futures plus 2.75 cents/gal, 3 cents/gal and then 4 cents/gal. It was assessed Wednesday at plus 3 cents/gal.
Additionally, Group 3 X Grade prices rose after being assessed Wednesday at plus 2.40 cents/gal. It was heard to trade at plus 2.50 cents/gal during the day on Thursday.
