New York Gasoline Premium Falls on Futures Surge, Cargo Increase

New York gasoline fell to the smallest premium to futures this month as October futures jumped to a record gap over November, and on speculation cargo shipments from Europe to the U.S. will increase.

October futures settled at a record 42.19 cents a gallon over November as East Coast inventories were at at four-year low, according to Energy Department data.

Traders and oil companies booked 16 tankers to carry gasoline from Europe to the U.S. for the two weeks to Oct. 10, up seven from last week’s total and the most shipments since Sept. 12, according to Bloomberg surveys of shipbrokers and traders.

The premium for reformulated, 87-octane gasoline in New York Harbor dropped 18.5 cents to 6 cents a gallon versus futures traded on the New York Mercantile Exchange at 3:22 p.m., according to data compiled by Bloomberg. Prompt delivery for the fuel gained 1.27 cents to 3.402 a barrel.

East Coast stocks of reformulated gasoline, or RBOB, dropped to 13.7 million barrels last week, the lowest level since Oct. 3, 2008.

East Coast inventories may rise from a four-year low as Europe increase and as Delta Air Lines Inc.’s Trainer refinery in Pennsylvania starts to produce fuel.

Delta’s Trainer refinery has restarted boilers and is “on schedule” to restart, Trebor Banstetter, a company spokesman, said in an e-mail responding to questions today.

Gulf Coast conventional 87-octane gasoline slipped 3.62 cents to 10.63 cents over November futures.

To contact the reporter on this story: Christine Harvey in New York at charvey32@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.