Bloomberg News

N.Y., Gulf Diesel Weakens as Hovensa Refinery Completes Work

December 06, 2011

Dec. 6 (Bloomberg) -- Diesel fuel in New York and the U.S. Gulf weakened as Hovensa LLC’s St. Croix refinery returned to normal production levels after completing maintenance.

“Work was completed on several units including one of the sulfur complexes and the acid plant,” David Roznowski, a spokesman for the company, said in an e-mail. “Planning allowed us to meet all customer commitments during the 2-month planned turnaround,” he said.

The premium for ultra-low-sulfur diesel in New York Harbor slipped 0.25 cent to 1.88 cents a gallon versus heating oil futures traded on the New York Mercantile Exchange at 3:30 p.m., according to data compiled by Bloomberg. Prompt delivery rose 2.68 cents to $3.0405 a gallon.

The Hovensa refinery, a joint venture of state oil company Petroleos de Venezuela SA and Hess Corp., receives and processes crude oil from around the world via tankers. The plant sent 47,000 barrels a day of heating oil and diesel to the U.S. East Coast in September, Energy Department data show.

The same fuel in the Gulf Coast fell 1.4 cents against futures to widen its discount to 5.5 cents. It’s the lowest level since Jan. 3.

--Editors: David Marino, Richard Stubbe

To contact the reporter on this story: Paul Burkhardt in New York at pburkhardt@bloomberg.net.

To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net.


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