Gasoline imports to the U.S. East Coast may be curtailed as employment conditions deteriorate and the region’s refineries accelerate output of the fuel, according to Poten & Partners Inc., a New York-based consulting firm.
Stockpiles in Padd 1, an area spanning the East Coast, slid to 52.2 million barrels July 13, the lowest for that time of year in at least a decade, Energy Department data show. That spurred speculation refiners would seek to replenish inventories with imports, Poten said in a report e-mailed July 20.
Such an increase in buying from overseas may be curbed because of a worsening jobs market in the U.S. north east, Poten said, citing data from the Federal Reserve Bank of Philadelphia. Eighteen percent of firms reported decreases in employment compared with 10 percent reporting increases, the bank said in its July Business Outlook Report.
Delta Air Lines Inc.’s September resumption of its 185,000 barrels-a-day Trainer, Pennsylvania, oil refinery will also help limit overseas purchases, Poten said. Imports will be curtailed because gasoline demand peaks in July, it said.
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