Northeast Gasoline Gains on Irving Work, Lower Supplies

New York gasoline rose for a second day as Irving Oil Corp. repaired units at its Saint John refinery in New Brunswick and inventories in the Northeast dropped to a 22-month low.

The work “within select areas of the refinery” is expected to be completed over the next few weeks and there are no production delays or issues with supply, Lesley Dickson, an Irving spokeswoman, said in an e-mail yesterday.

The 298,800-barrel-a-day refinery exports more than half of its production to the U.S. Northeast, according to the company’s website. Total gasoline stockpiles in New England, or the Energy Department’s PADD 1A region, fell to 2.7 million barrels, the lowest level since November 2010, according to Energy Department data.

The premium for reformulated, 87-octane gasoline, or RBOB, in New York Harbor increased 3 cents to 19.5 cents a gallon versus futures traded on the New York Mercantile Exchange at 3:02 p.m. Prompt delivery increased 10.54 cents to $3.099 a gallon.

“There’s not much cushion in the RBOB system up in the Northeast,” said Andy Lipow, president of Lipow Oil Associates LLC in Houston.

Stocks of RBOB on the East Coast, including PADD 1A, dropped 1.91 million barrels to 14.1 million last week, the lowest level since October 2008, according to the Energy Department.

To contact the reporter on this story: Joshua Falk in New York at jfalk19@bloomberg.net

To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net

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