Bloomberg News

N.Y. Diesel Weakens After European Prices Drop for Sixth Day

May 18, 2012

New York diesel weakened as the fuel in Europe fell for a sixth day on concern that Greece will have to leave the euro currency union.

Gasoil for June delivery dropped 1.3 percent on the ICE Futures Europe exchange in London. German Finance Minister Wolfgang Schaeuble said financial-market turmoil caused by the euro-zone debt crisis may last two more years.

Lower prices in Europe reduce incentive for the U.S. to export the fuel.

The premium for ultra-low-sulfur diesel in New York Harbor fell 0.75 cent to 6.13 cents versus heating oil futures traded on the New York Mercantile Exchange at 9:08 a.m., according to data compiled by Bloomberg. Prompt delivery slipped 0.6 cent to $2.9118 a gallon.

The same fuel in the Gulf Coast declined 0.8 cent to a premium of 1.95 cents a gallon.

Royal Dutch Shell Plc’s refinery in Deer Park, Texas, released materials and shut a unit late yesterday, Emily Oberton, a company spokeswoman in Houston, said in an e-mail. Operations stabilized within an hour, she said.

Emergency workers responded to a release from a sulfur unit at the 340,000-barrel-a-day plant, according to a message left on a community hot line.

The discount for reformulated, 87-octane gasoline, or RBOB, in the Gulf narrowed 1.75 cents to 1.5 cents a gallon versus futures. Prompt delivery rose 3.27 cents to $2.8784 a gallon.

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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