Spot Gasoline Drops as East Coast, Midwest Refinery Units Start

Spot gasoline in New York weakened for a fourth session after units capable of producing more than 300,000 barrels of the fuel returned to service in the East Coast and Midwest regions.

Irving Oil Corp. started a 70,000-barrel-a-day catalytic cracker at its Saint John refinery in New Brunswick, Lesley Dickson, a company spokeswoman, said in an e-mail yesterday. Units at other refineries, including a 165,000-barrel-a-day catalytic cracker at BP Plc’s plant in Whiting, Indiana, resumed service late last week.

The premium for conventional, 87-octane gasoline in New York Harbor fell 2.12 cents to 1.38 cents over futures traded on the New York Mercantile Exchange at 2:29 p.m. local time, according to data compiled by Bloomberg. Prompt delivery dropped 4.15 cents to $2.3352 a gallon.

The Saint John refinery exports about 175,000 barrels of petroleum products a day to markets in the U.S. Northeast, including New York Harbor, the delivery point of the Nymex gasoline and heating oil contracts.

Sunoco Inc. also started a desulfurization unit at its refinery in Philadelphia on Dec. 1, Jeff Moran, a spokesman for the city’s health department, said in an e-mail.

The premium for conventional, 87-octane gasoline in the Gulf Coast slipped 1.25 cents to a discount of 4.25 cents to futures at 2:31 p.m. in New York.

Valero Energy Corp. started a fluid catalytic cracker at its Memphis, Tennessee, refinery over the weekend, Bill Day, a company spokesman, said in an e-mail yesterday. The 70,000- barrel-a-day unit is increasing to planned rates, Day said.

To contact the reporter on this story: Paul Burkhardt in New York at

To contact the editor responsible for this story: Dan Stets at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.