Gulf Coast Diesel Gains With European Inventories at 7-Week Low

Gulf Coast diesel rose after European inventories of the fuel dropped to the lowest level in seven weeks.

Gasoil stockpiles, a category of distillate fuel, in independent storage fell 1.6 percent to 2.46 million metric tons in Europe’s Amsterdam-Rotterdam-Antwerp oil-trading hub, PJK International BV said yesterday.

The premium for ultra-low-sulfur diesel in the Gulf Coast (DIESGULP) rose 0.37 cent to 4.75 cents a gallon versus heating oil futures traded on the New York Mercantile Exchange at 2:07 p.m., according to data compiled by Bloomberg. It is the highest level since July 5. Prompt delivery rose 4.2 cents to $3.3083 a gallon.

Ineos Group AG shut a crude unit March 12 at its Grangemouth refinery in the U.K., according to Abudi Zein, a senior vice president at Genscape Inc.

Motiva Enterprises LLC is performing work on units at the 255,000-barrel-a-day Convent refinery in Louisiana, according to a company spokeswoman.

The same fuel in New York Harbor rose 0.75 cent to 7.25 cents a gallon versus futures. It’s the highest level since Oct. 5.

Sunoco Inc. (SUN) started a hydrotreater after shutting the unit for maintenance at the Girard Point section of its Philadelphia refinery, according to a notice with city regulators.

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.