New York gasoline strengthened after a boiler was shut on a coker unit at PBF Energy Inc. (PBF:US)’s Delaware City, Delaware, refinery and on speculation demand for U.S. East Coast exports is growing.
The premium for reformulated, 84-octane gasoline, or RBOB, in the New York Harbor region widened 0.08 cent to 0.43 cent a gallon versus futures on the New York Mercantile Exchange at 3:43 p.m., according to data compiled by Bloomberg. Conventional gasoline for ethanol blending, or CBOB, increased 1.12 cents to a discount of 13.13 cents.
PBF said the boiler would be offline until tomorrow at the 182,200-barrel-a-day Delaware City plant. U.S. East Coast exports may climb on higher demand from Petroleos de Venezuela SA, operator of the Amuay refinery, said Carl Larry, president of Oil Outlooks & Opinions LLC in Houston.
“PDVSA is looking for spot barrels of reformate and that’s more than likely causing the rift in gasoline,” said Larry, who is based in Houston. “Delaware City is probably more sensitive to distillates.”
Ultra-low-sulfur diesel was unchanged at 0.25 cent a gallon above Nymex futures, according to data compiled by Bloomberg. Jet fuel in New York strengthened 0.63 cent to a 7.5-cent discount.
PDVSA may be seeking more barrels after Venezuela oil union leader Ivan Freites said a 100,000-barrel-a-day distillation unit remained offline due to furnace problems at the company’s Amuay refinery. The work, which began two weeks ago, should take about four weeks, he said in a June 10 interview.
An oil-products tanker owned by Prime Marine Management Inc. was chartered today to the Caribbean from Philadelphia, for loading on June 18, according to fixture data compiled by Bloomberg.
U.S. Atlantic Coast exports may already be getting a boost from increased refinery inputs, according to a research report from shipbroker Charles R. Weber in Greenwich, Connecticut.
Refineries on the U.S. East Coast, known as PADD 1, processed 1.18 million barrels a day of crude and other feedstock in the week ended June 7, the highest seasonal level since 2010, U.S. Energy Information Administration data showed yesterday. Gasoline stockpiles in the region were 63.8 million barrels and distillates 35.6 million.
About 23 cargoes were fixed from the Atlantic Coast in May, compared with a year-to-date monthly average of eight, Charles R. Weber said.
The 3-2-1 crack spread in the New York Harbor, a rough measure of refining margins for gasoline and diesel fuel based on Brent oil in Europe, gained 44 cents to $16.80 a barrel, according to data compiled by Bloomberg.
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