Philadelphia Refinery Woe Boosts U.S. East Coast Margins

  • Fuel prices rise to attract supply from Gulf Coast, Europe
  • PBF now largest refiner in area, benefits from wider margins
Explosion and fire at the Philadelphia Energy Solutions oil refinery on June 21, 2019.Photographer: Matt Rourke/AP
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U.S. East Coast refining margins have more than doubled in the past month, helped by weakening physical crude markets and a fire that crippled the biggest facility in the region.

Last week, Philadelphia Energy Solutions announced it plans to close after a fire in late June, it’s second that month, destroyed most of an alkylation unit, which makes high-octane gasoline. The complex processed 335,000 barrels of crude a day and supplied about 3% of gasoline demand in the region.