Bloomberg News

Midwest Diesel Falls to 21-Month Low Amid ‘High’ Pipeline Level

December 01, 2011

Dec. 1 (Bloomberg) -- Midwest diesel weakened to the lowest level in 21 months as Enterprise Products Partners LP lifted transit time restrictions on its pipeline system because of high supplies of the product.

“System supply of ultra-low-sulfur diesel has risen to approximately 1.8 million barrels for a 14-day supply,” the Houston-based company said in a bulletin to shippers today. “Shippers are still required to nominate all deliveries, however they will have the ability to satisfy those nominations without regard to transit time.”

The discount for ultra-low-sulfur diesel in the Midwest, or Group 3, widened 1.5 cents to 5.25 cents a gallon versus heating oil futures traded on the New York Mercantile Exchange at 2:43 p.m. in New York, according to data compiled by Bloomberg. It’s the lowest level since Feb. 16, 2010. Prompt delivery fell 6.3 cents to $2.9209 a gallon.

The discount for the same fuel in Chicago widened 2.5 cents to 13 cents a gallon.

The Enterprise TE Products pipeline stretches 4,600 miles from Texas through the Midwest to the U.S. Northeast, according to the company’s website. It can carry 340,000 barrels a day of refined products, petrochemicals and liquefied petroleum gas.

--Editors: Richard Stubbe, Margot Habiby

To contact the reporter on this story: Paul Burkhardt in New York at

To contact the editor responsible for this story: Dan Stets at

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