New York gasoline’s premium to futures more than doubled this week as the shutdown of refineries supplying the region strained inventories at the peak of the U.S. demand season.
The fuel made to East Coast specifications gained for a fourth day to the highest level since Sept. 2. Hovensa LLC’s St. Croix refinery in the U.S. Virgin Islands and the Trainer refinery in Pennsylvania, now owned by a subsidiary of Delta Air Lines Inc., both shut before the start of the summer driving season.
The premium for reformulated, 87-octane gasoline, or RBOB, in New York Harbor increased 3 cents to 19.5 cents a gallon versus futures traded on the New York Mercantile Exchange at 1:50 p.m., according to data compiled by Bloomberg. The spread was 8.13 cents on June 18. Prompt delivery rose 5.95 cents to $2.7746 a gallon.
Colonial Pipeline Co., which operates the largest line linking U.S. Gulf Coast oil refiners to East Coast markets, allocated gasoline shipments on Line 1, its gasoline mainline, for cycle 37, according to a notice sent to shippers.
Colonial’s pipelines ship fuel in cycles that run back to back. When a pipeline is full, refiners may have to sell excess supply into the Gulf Coast market, which may push prices lower.
Gulf Coast RBOB weakened 0.5 cent to a premium of 1.75 cents a gallon versus Nymex.
PetroEcuador, the state-owned oil company, said in an e- mailed statement today that its Esmeraldas refinery resumed output. The refinery, which has an output capacity of 110,000 barrels a day, was knocked offline yesterday by a power failure.
The premium for ultra-low-sulfur diesel versus Nymex heating oil futures in the Gulf Coast held at 6.88 cents.
The U.S. exported about 34,000 barrels of distillate a day to Ecuador in March, according to Energy Department data.
To contact the reporter on this story: Paul Burkhardt in New York at firstname.lastname@example.org
To contact the editor responsible for this story: Dan Stets at email@example.com