Gulf Coast Gasoline Slips as Tropical Depression Seven Scatters

Gulf Coast gasoline weakened as the National Hurricane Center reported “remnants” of Tropical Depression Seven in the Caribbean have a low chance of becoming a cyclone, reducing the threat of an interruption to U.S. refinery operations.

The system has a 20 percent chance of becoming a tropical cyclone during the next 48 hours as it moves westward, the center said in an outlook issued at 2 p.m. New York time. The center in an earlier advisory gave the system a 10 percent chance of turning into a cyclone.

The premium for reformulated gasoline, or RBOB, in the Gulf Coast dropped 3.38 cents to 2.25 cents a gallon versus futures traded on the New York Mercantile Exchange at 1:59 p.m. in New York, data compiled by Bloomberg showed. Prompt delivery fell 3.77 cents to $3.0333 a gallon.

The weather system is producing disorganized showers and thunderstorms from the central Caribbean northward to Hispaniola and Jamaica, the NHC report showed.

European gasoline rose to a three-month high, reducing the incentive to export the fuel to the U.S.

Gasoline barges for immediate loading in Amsterdam- Rotterdam-Antwerp traded at $1,071 a metric ton, according to a survey of traders and brokers monitoring the Argus Bulletin Board. That compares with $1,057 to $1,062 on Aug. 10 and is the most since May, according to data compiled by Bloomberg.

The discount for conventional, 87-octane gasoline in New York Harbor narrowed 0.5 cent to 3.25 cents a gallon versus futures.

Imports of gasoline to the East Coast dropped to 383,000 barrels a day in the week ended Aug. 3, the lowest level for shipments to the region since April, the Energy Department reported.

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.

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.