RBOB is tumbling near $1.60 handle after headlines reported Valero saying that startup is underway at its Three Rivers refinery and its Corpus Christi refinery, both in Texas, according to a statement from co. spokeswoman Lillian Riojas.
Blomberg reports that the company is working to ensure availability of critical transportation and logistics infrastructure to resume all operations. Houston and Texas City, Texas, facilities continue to operate. Port Arthur, Texas, refinery shut because of flooding and potential power supply interruption.
Additionally, Plains resumed service on its Cactus crude pipeline after shutting it down Friday in preparation for Harvey, according to person familiar with matter.
And, Buckeye expects to restore its 50k b/d condensate splitter to normal operations to at Corpus Christi, Texas, later Wednesday.
But it appears the machines took comfort in the headline...sending RBOB to the lows of the day...
Though we are unsure of why this would be bearish for crude (unless it is the crack spread arbs weighing it down).
But RBOB has a long way to go...