MARKETWIRE ALERTS
Barani Krishnan
DTN Energy Editor
MarketWire Afternoon News Nov 6:
Updated at 5:00 PM ET
HEADLINES:
-- CITGO Corpus Christi Reports FCCU2 Shutdown
-- Air Products Carson Hydrogen Plant Plans Flaring
-- Baker Hughes: N. America Rigs Fall 2 to 827
-- Delek US: Record Q3 Profit on Cracks, Renewable Waivers
-- Phillips 66 Bayway Workers Ratify Labor Agreement
-- Russian Diesel Shipments Face NYH Import Blockade
-- U.S. Oct. Nonfarm Payroll Rises to 165K, Jobless Rate 4.1%
-- EIA to Release Natural Gas Report Nov. 13 Due to Holiday
-- EIA to Publish WPSR on Nov. 12 Due to Holiday
-- Weekly Recap: Rack Diesel Drops 38cts, Gas 35cts
NEWS
CITGO Corpus Christi Reports FCCU2 Shutdown
CITGO Petroleum reported an unplanned shutdown of the No. 2 fluid catalytic
cracking unit (FCCU2) at its 165,000 bpd Corpus Christi refining complex in
Texas following communication issues, according to a filing submitted Friday
(11/6) to the Texas Commission on Environmental Quality (TCEQ).
The incident began Thursday (11/5) at approximately 3:13 p.m. CT and ended
Friday (11/6) at 3:13 p.m., lasting 24 hours at the refinery's East Plant.
The refinery reported estimated emissions of 5,001 pounds of carbon monoxide
from the FCCU2 regenerator and electrostatic precipitator (ESP), along with
opacity reaching 90%, exceeding the permitted limit of 20%.
CITGO said communication issues triggered the unexpected shutdown, prompting
refinery personnel to stabilize processing units and carry out a controlled
startup to minimize emissions.
The FCCU converts heavier petroleum streams into gasoline blendstocks and
other lighter products, making it a key component of the refinery's gasoline
production operations. The filing did not indicate whether the unit had fully
resumed normal operations or quantify any impact on gasoline output.
The latest incident follows an October 21 disruption at the same refinery's
East Plant, when a loss of steam from a third-party supplier forced multiple
processing units to shut down.
DTN reached out to CITGO Petroleum for additional details but did not
receive an immediate response.
Air Products Carson Hydrogen Plant Plans Flaring
Air Products reported a planned start-up/shut down flare event at its
hydrogen plant in Carson, California, according to a notice filed with the
South Coast Air Quality Management District's (SCAQMD) Flare Event Notification
System.
The event is estimated to begin Thursday (11/5) at 12:01 a.m. and end Monday
(11/9) at 11:59 p.m. The notice listed no actual start or stop time as of
Friday (11/6). The notice said vent gas flow may exceed 500,000 standard cubic
feet over the entire event, though it did not list an actual volume. Air
Products did not identify the affected units or say whether hydrogen deliveries
would change, and the district had posted no staff comments.
The Carson plant feeds Air Products' pipeline network, which is connected to
Marathon Petroleum's 365,000 bpd Los Angeles refinery, and the Valero's 135,000
bpd Wilmington, California, refinery. The network also ties into World Energy's
Paramount, California, renewable fuels plant, which is expanding to 340 million
gallons per year of sustainable aviation fuel and renewable distillates.
Baker Hughes: N. America Rigs Fall 2 to 827
North American energy drilling activity fell by two rigs to 827 in the
current week, Baker Hughes' weekly rotary rigs report released Friday (11/6)
showed.
Compared with the corresponding week of 2025, combined rigs for Canada and
the United States were up 88 from the 739 units active during that period,
according to the report.
This week's decline was driven by Canada dropping three rigs to 223, while
the U.S. added one rig to reach 604.
Oil-directed U.S. rigs rose by one to 463, while gas-directed drilling also
increased by one to 131. Miscellaneous rigs fell by one to 10.
By trajectory, U.S. horizontal rigs increased by two to 529, while
directional rigs fell by one to 51 and vertical rigs declined by one to 21.
Delek US: Record Q3 Profit on Cracks, Renewable Waivers
Refiner Delek US Holdings reported Friday (11/6) a record third-quarter net
income of $1.13 billion compared with the year-ago level of $178.0 million,
driven by higher crack spreads and waivers of regulatory compliance on
renewable fuels.
Refining segment adjusted EBITDA rose to $1.24 billion from a prior $697.4
million, Delek said, reflecting an increase in refining margins driven by
higher crack spreads as well as small refinery exemptions granted during the
period.
The Brentwood, Tennessee-based refiner's benchmark crack spreads were up by
an average of 191.2% for the third quarter from year-ago levels.
Adjusted EBITDA was also impacted by inventory adjustments of $86.3 million
and $67.5 million for third quarter 2026 and 2025, respectively.
Total refinery throughput averaged 316,291 bpd in the third quarter, up from
314,161 bpd in the third quarter of 2025, with crude utilization standing at
100.2% of nameplate capacity.
"Following strong operational execution across our refining system, our
crude utilization reached 100.2% during the third quarter," President and CEO
Avigal Soreq said. "We continue to focus on operational excellence, cash flow
generation, and returning capital to shareholders."
Phillips 66 Bayway Workers Ratify Labor Agreement
The return-to-work schedule for approximately 385 union employees at
Phillips 66's 275,000-bpd Bayway refinery in Linden, New Jersey, remains
unresolved following a labor agreement that ended a two-week dispute at the
facility and its adjacent Linden Terminal.
Workers represented by Teamsters Local 877 ratified the agreement Monday
(11/2), after being locked out October 19 when negotiations failed to produce a
new contract. The dispute involved wages, benefits, work schedules and safety
protections.
Phillips 66 maintained refinery and terminal operations throughout the
lockout using qualified supervisors, engineers and technical personnel. The
company has not reported a production interruption resulting from the labor
dispute.
The Bayway refinery, located along New York Harbor, has the capacity to
produce 145,000 bpd of gasoline and 115,000 bpd of distillates, according to
Phillips 66. The facility also manufactures jet fuel, heating oil and
petrochemical feedstocks, with products distributed to East Coast markets by
pipeline, barge, rail and truck.
Phillips 66 issued its latest publicly available employee bulletin November
2, but has not confirmed when union employees will resume their duties.
DTN reached out to Phillips 66 for additional details but did not get an
immediate response.
Russian Diesel Shipments Face NYH Import Blockade
A Russian diesel consignment approved by the Trump administration for export
to the U.S. faces a potential blockade at New York Harbor as Democratic New
Jersey Governor Mikie Sherrill warns port and terminal operators against
accepting the fuel.
In a letter issued Monday (11/2), Sherrill said importing Russian diesel
could expose businesses and individuals to civil and criminal penalties,
arguing that a federal authorization permitting the shipments conflicts with a
2022 law prohibiting Russian petroleum imports.
The U.S. Treasury Department's Office of Foreign Assets Control issued a
General License 135 on October 9, authorizing certain transactions involving
the sale, delivery, unloading and importation of Russian-origin diesel. The
Republican administration of U.S. President Donald Trump justified the import
as necessary for heating in the Northeast, which includes New Jersey, ahead of
the winter season.
Connecticut Senator Richard Blumenthal, whose state is also in the
Northeast, is another official besides Sherill who has urged shipping companies
not to accept the Russian cargo. In an October 27 statement, Blumenthal
identified the vessel with the Russian diesel as Agioi Fanendes, saying it was
laden with nearly 40,000 metric tons of the fuel and had declared the Port of
New York and New Jersey as its destination.
The Russian diesel cargo set sail on October 22 and its current destination
has not been independently confirmed.
According to Blumenthal, the vessel was expected to make port on November 7,
based on information available as of October 24.
The escalating pushback against the diesel cargo highlights the growing
opposition to the Trump administration since the U.S. midterm elections on
Tuesday (11/3) as a newly empowered Democratic Congress prepares to challenge
executive actions on foreign energy imports and war powers.
East Coast distillate imports averaged 95,000 bpd during the week ended
October 30, up from 94,000 bpd the previous week, according to the Energy
Information Administration.
Regional distillate inventories increased 719,000 bbl to 22.6 million bbl,
including a 985,000-bbl build in the Central Atlantic to 10.8 million bbl.
National distillate stocks, however, fell 3.6 million bbl to 99.3 million bbl
during the same period, EIA data showed.
U.S. Oct. Nonfarm Payroll Rises to 165K, Jobless Rate 4.1%
The U.S. labor market added 165,000 jobs in October, while the unemployment
rate changed little at 4.1%, the Bureau of Labor Statistics (BLS) said Friday
(11/6).
The number of people who had been jobless for 27 weeks or more changed
little over the month at 2.0 million. The number of people employed part time
for economic reasons increased by 339,000 to 4.8 million in October.
In October, average hourly earnings for all employees on private nonfarm
payrolls increased by 14 cents, or 0.4%, to $38.00.
EIA to Release Natural Gas Report Nov. 13 Due to Holiday
The Energy Information Administration will delay by a day its Weekly Natural
Gas Storage Report due to next week's Veterans Day federal holiday, the agency
announced.
The report, typically published at 10:30 a.m. ET on Thursdays, will be
released at 10:30 a.m. ET on Friday, November 13, because of the holiday on
Wednesday, November 11, the EIA stated.
EIA to Publish WPSR on Nov. 12 Due to Holiday
The Energy Information Administration will delay by a day its Weekly
Petroleum Status Report (WPSR) due to next week's Veterans Day federal holiday,
the agency announced.
The WPSR, typically published at 10:30 a.m. ET on Wednesdays, will be
released at 12:00 p.m. ET on Thursday, November 12, because of the holiday on
Wednesday, November 11, the EIA stated.
Weekly Recap: Rack Diesel Drops 38cts, Gas 35cts
U.S. wholesale rack prices for gasoline and ultra-low sulfur diesel (ULSD)
finished the week sharply lower Friday (11/6), as shifting expectations
surrounding the Middle East conflict pressured petroleum markets despite
intermittent recoveries in crude oil and refined product futures.
Nationwide ULSD rack prices averaged $4.8333 gallon, down 38.37cts, or
7.36%, from the previous week's $5.2170 gallon, according to DTN data.
Conventional unleaded gasoline declined 34.98cts, or 10.64%, to $2.8039 gallon.
Petroleum markets experienced substantial volatility during the week as
diplomatic efforts involving Washington and Tehran raised prospects for easing
hostilities. However, reports of tanker incidents and possible additional
military action kept supply risks in focus. Democratic victories in Tuesday's
U.S. midterm elections also introduced uncertainty over Washington's approach
to the conflict and future energy policy.
Domestic supply conditions remained tight despite weaker wholesale prices.
The Energy Information Administration reported Wednesday that distillate
inventories fell 3.6 million bbl to 99.3 million bbl during the week ended
October 30, while gasoline stocks declined 222,000 bbl to 209 million bbl.
Commercial crude inventories decreased 865,000 bbl to 409.8 million bbl.
Friday's futures showed a modest recovery in crude and diesel, with WTI
advancing $0.16 to $90.67 bbl and NYMEX ULSD rising 0.13ct to $4.3548 gallon.
RBOB gasoline declined 1.77cts to $2.7446 gallon. The diesel crack increased
$0.10 to $92.41 bbl, remaining below the $100 bbl level reached in late
October, while the gasoline crack fell $0.58 to $24.96 bbl.
ULSD rack prices declined across all five PADDs, led by the Midwest, down
52.92cts to $4.7621 gallon. Rocky Mountain diesel fell 37.96cts to $5.1388
gallon, while East Coast prices dropped 35.34cts to $4.6582 gallon.
Gasoline racks weakened in four regions, with the West Coast posting the
largest decline at 76.3cts to $3.4253 gallon, followed by the Gulf Coast, down
59.49cts to $2.6125 gallon. Rocky Mountain gasoline was the exception,
increasing 27.18cts to $3.0312 gallon.
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