Gasoline strengthened in the New York Harbor market on speculation Delaware, New Jersey and Pennsylvania refineries will shut as Hurricane Sandy approaches the region.
Five East Coast plants, with a combined capacity of about 1.15 million barrels a day, may be affected by the storm, according to Andy Lipow, president of energy consultant Lipow Oil Associates LLC in Houston.
The refineries include Philadelphia Energy Solutions’ Philadelphia; PBF Energy Inc. (PBF:US)’s Paulsboro, New Jersey and Delaware City, Delaware; Monro Energy LLC’s Trainer, Pennsylvania, and Phillips 66 (PSX:US)’s Linden, New Jersey plants.
Sandy, a Category 1 storm with winds of 75 miles (121 kilometers) an hour at 2 p.m., was 430 miles south-southeast of Charleston, South Carolina, moving north at 7 mph. It may shutter plants for five to seven days due to pre-storm closures and power outages, Roger Read, an energy analyst with Wells Fargo & Co. in Houston, said today in a note to investors.
Reformulated gasoline to be blended with ethanol gained 0.25 cent to trade at a premium of 2 cents a barrel over futures on the New York Mercantile Exchange at 2:57 p.m. in New York. Prompt delivery increased by 2.52 cents to $2.7191 a gallon.
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