Gulf Coast Diesel Weakens as Colonial Allocates Line Shipments
Diesel fuel in the Gulf Coast weakened after Colonial Pipeline Co., operator of the largest pipeline linking the U.S. refining center with East Coast markets, allocated shipments of the fuel.
Colonial allocated shipments on Line 2, a mainline carrying diesel from Houston to Greensboro, North Carolina, for Cycle 65, according to a bulletin to shippers yesterday. When space is limited to ship on the line, prices may weaken in the Gulf where the fuel remains.
The discount for ultra-low-sulfur fuel in the Gulf Coast widened 0.25 cent to 2 cents versus heating oil futures traded on the New York Mercantile Exchange at 2:03 p.m., according to data compiled by Bloomberg. Prompt delivery fell 0.21 cent to $3.152 a gallon.
The premium for the same fuel in New York Harbor fell 0.12 cent to 3.13 cents. The differential versus futures for conventional, 87-octane gasoline at the same hub rose 0.38 cent to a premium of 5.13 cents a gallon.
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