Gasoline weakened to the lowest level in more than a month in the New York Harbor on speculation more fuel shipments to the U.S. East Coast will add to supplies and help depress prices in the region.
Traders and oil companies booked 13 tankers to carry the motor fuel from Europe to the East Coast for the two weeks to Dec. 19, according to the median estimate of six shipbrokers who specialize in transporting gasoline. Inventories in the Central Atlantic, known as PADD 1B, added 1.7 million barrels to 24.5 million last week, the Energy Department reported.
Conventional gasoline to be blended with ethanol, or CBOB, in the New York Harbor retreated 0.38 cent to 1 cent a gallon over futures on the New York Mercantile Exchange at 3:15 p.m. That’s the narrowest gap since Oct. 24 and the third consecutive daily decline. Reformulated, 84-octane gasoline held at a premium of 1.75 cents a gallon.
The 27 ships booked or probably hired over the next two weeks, called Medium-Range tankers, would be able to carry about 607,000 barrels a day, compared with about 315,000 barrels normally. Vessels on the trans-Atlantic route are earning $12,877 daily, according to the London-based Baltic Exchange. Returns jumped 51 percent in the last week, the data showed.
Ultra-low-sulfur diesel in New York advanced 3.37 cents to 8.5 cents over heating oil futures after distillate stockpiles declined for the first time in three weeks. Supplies of heating oil and diesel dropped by 445,000 barrels to 20.4 million last week, according to Energy Department data.
To contact the reporter on this story: Christine Harvey in New York at email@example.com
To contact the editor responsible for this story: Dan Stets at firstname.lastname@example.org