Gulf Coast gasoline rose on speculation that outages at Petroleos de Venezuela SA’s Amuay plant and Irving Oil Corp.’s Saint John refinery will boost demand for shipments from Texas and Louisiana.
Amuay, shut after an Aug. 25 explosion, is running at half of capacity and may not return to full operation for three to four months, Venezuelan newspaper El Nacional reported last week. The Saint John facility in New Brunswick expects to complete maintenance by the end of October, Lesley Dickson, a company spokeswoman, said in an e-mail.
The largest refinery in Venezuela, Amuay is a major fuel supplier to the Caribbean. Saint John sends more than half of its output to the East Coast, where stocks of reformulated gasoline, or RBOB, dropped to 13.7 million barrels last week, Energy Department data show.
“These refineries are a big deal because that’s where a lot of gasoline gets delivered from and that’s why we’re seeing tighter supply,” Carl Larry, president of Oil Outlooks & Opinions, LLC, said in an interview at Bloomberg’s headquarters in New York today. “People are playing it safe and buying in right now rather than waiting.”
The fuel in New York Harbor dropped by 0.5 cent to 47.5 cents a gallon, after ending Friday at 6 cents over October futures, or about 48 cents over November.
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