Gulf Gasoline Strengthens After Inventories Drop to 10-Week Low

Gulf Coast gasoline strengthened after a government report showed inventories in the region fell to the lowest level since Nov. 11.

Gasoline stockpiles in the Gulf Coast declined 1.9 million barrels to 73 million barrels last week, according to the Energy Department.

The discount for conventional, 87-octane gasoline in the Gulf Coast (MOSGC87P) narrowed 0.33 cent to 3 cents versus futures traded on the New York Mercantile Exchange at 2:08 p.m., according to data compiled by Bloomberg. Prompt delivery rose 4.88 cents to $2.8261 a gallon.

The same fuel in New York Harbor (MOSNY87P) held at a premium of 2.13 cents a gallon.

Hess Corp. may shut the fluid catalytic cracker at the Port Reading refinery in New Jersey for about three weeks, the company said today.

The 70,000-barrel-a-day plant lost $6 million in the fourth quarter, Chief Financial Officer John P. Rielly said during a quarterly conference call.

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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