N.Y., Gulf Jet Fuel at 19-Month High Levels Amid Refinery Work
Spot jet fuel spreads in New York and on the Gulf Coast reached their highest levels in 19 months as Hovensa LLC reduced rates at its St. Croix refinery in the U.S. Virgin Islands and airlines flew more.
The rates were lowered while a unit is started to replace a distillate desulfurization unit damaged in a Feb. 11 fire, Alex Moorhead, a Hovensa spokesman, said in an e-mail yesterday.
The differential for New York jet fuel against New York Mercantile Exchange heating oil futures rose 1.37 cents to a premium of 11 cents a gallon at 11:53 a.m., according to data compiled by Bloomberg. It’s the highest level since July 15, 2009. Prompt delivery rose 1.3 cents to $2.8417 a gallon.
Sunoco Inc.’s Philadelphia refinery also shut units for repairs last week.
Most of the largest airlines in January increased capacity, a measure of seats and miles flown.
AMR Corp.’s American Airlines’ capacity rose 2.5 percent last month from a year ago, while Southwest Airlines Co.’s increased 7.5 percent. Delta Air Lines Inc., the second-biggest U.S. carrier, increased 4.2 percent and United Continental Holdings Inc.’s capacity, including regional carriers, rose 0.4 percent.
The premium for jet fuel in the Gulf Coast held steady at yesterday’s level of 7.25 cents, also a 19-month high. Prompt delivery fell 0.85 cent to $2.7964.
The discount versus futures for conventional, 87-octane gasoline in New York Harbor widened 0.25 cent to 2.13 cents a gallon.
To contact the reporter on this story: Paul Burkhardt in New York at pburkhardt@bloomberg.net.
To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net.
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