Tankers able to haul 250,000 barrels of oil products will be used to transport cargoes to New York Harbor from the U.S. Gulf Coast after the waiver of a rule on Nov. 2, according to Morgan Stanley. (MS)
The Department of Homeland Security said Nov. 2 it waived part of a requirement within the Jones Act, allowing non-U.S. vessels to haul fuel between the nation’s ports until Nov. 13. Costs for tankers shipping gasoline will vary between $2.30 and $2.50 a barrel depending on vessel age, Hussein Allidina, Morgan Stanley’s New York-based head of commodities research, said in an e-mailed report today.
Prices of reformulated gasoline blendstock for oxygenate blending, or RBOB, in New York Harbor after the close of business on Nov. 2 were at a premium of almost $5.50 a barrel to those on the Gulf Coast, “incentivizing cargoes to flow north,” Morgan Stanley said in the report.
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