Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Jacky Rousseau with Back Bay Research.
Jacques Rousseau – Soleil - Back Bay Research
Good morning gentleman.
Gary R. Dalke
Good morning Jack.
Jeff A. Stevens
Good morning Jack
Jacques Rousseau – Soleil - Back Bay Research
Just a question for you, your East Coast refining margins are little bit over $7 a barrel were obviously down from some other period, but they were better than some of your peers have reported for the same period. Any thoughts on why that would be?
Jeff A. Stevens
Jack this is Jeff. When you look at the East Coast and you look at our competitors there, we really believe we have a favorable cost structure because of the changes we've made at that facility. We feel like been able to run a 100% of the heavy crude even though that differentials come in. We still think it's probably the most competitive feedstock on the East Coast and so I think that you are probably seeing some of that in those numbers.
Jacques Rousseau – Soleil - Back Bay Research
Is that still the Marlim crude oil?
Jeff A. Stevens
That's still we are bringing in the Marlim along with some others but its primarily the Marlim.
Gary R. Dalke
And Jack this is Gary. The other we talked about the lower cost for market inventory adjustments with LIFO expense rising in the quarter. We actually had a pickup from lower costs for market inventory adjustment, which impacted Yorktown margins favorably. If you would have excluded the LCM right off our margin would have been around $1 per barrel in the quarter.
Jacques Rousseau – Soleil - Back Bay Research
The $1 barrel less or?
Gary R. Dalke
No, a $1 barrel total but?
Jacques Rousseau – Soleil - Back Bay Research
Okay. That would explain it. Thank you.
Operator
Your next question comes from the line of Jeff Dietert with Simmons & Company. Please proceed.
Jeffrey Dietert – Simmons & Company
Good morning.
Jeff A. Stevens
Good morning Jeff.
Jeffrey Dietert – Simmons & Company
You guys have been successful increasing heavy sour utilization at Yorktown and I was wondering what the discounts that we're currently experiencing, are you moderating that later or continuing with near 100% heavy feedstock?
Jeff A. Stevens
We are continuing near 100% heavy, what we’ve done, consistent with we've talked about in the last quarter is we’re doing a lot more blend stocks and feedstock from other refiners to supplement our crude runs. But even and as you can imagine we model it virtually daily but even with the reduction in the light heavy spread. It's still makes more sense for us to run the heavy crude right now.
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