US aromatics spot prices rose Wednesday after US-based Hess said it will shut its Hovensa refinery in St. Croix in the US Virgin Islands by mid-February because of mounting economic losses.
The announcement pushed aromatics values higher and January spot benzene was talked Wednesday at 416-428 cents/gal DDP US Gulf, while February and March were flat to January. US mixed xylene prices also were affected by Hess' announcement and second-half February offers were seen higher at 420 cents/gal. January toluene was heard at 400-405 cents/gal FOB USG, while February was flat to January. No confirmed trades were immediately available.
"Closing the St Croix refinery has everything moving up," said one participant.
Hovensa, a joint venture between Hess and Petroleos de Venezuela, said losses at the St. Croix refinery have totaled $1.3 billion over the past three years and were projected to continue. The losses were attributed to weak demand for refined petroleum products due to the global economic slowdown and the addition of new refining capacity in emerging markets.
In addition, Hess low US natural gas prices put the oil-fueled refinery at a competitive disadvantage.
The refinery, which has an estimated production capacity of 5,800 b/d of toluene, 4,500 b/d of benzene, and 4,000 b/d of mixed xylene, will operate as an oil storage terminal following the shutdown.
