New York Gasoline Strengthens as Terminal Shutdowns Limit Supply
Conventional gasoline strengthened in New York Harbor as terminals in New York and New Jersey remained shut, helping limit supplies already hovering at the lowest levels in a month on the U.S. East Coast.
Motiva Enterprises LLC’s Newark, New Jersey, and Brooklyn and Long Island, New York, terminals were closed for an 11th day after Hurricane Sandy made landfall in southern New Jersey. Crews are assessing damage and don’t have a timeline for restart, according to a statement on the company’s website. Phillips 66 (PSX)’s Tremley Point terminal in New Jersey is also shut.
Stockpiles of motor fuel on the U.S. East Coast dropped by 1.25 million barrels to 46.6 million in the week ended Nov. 2, the lowest level since Oct. 5, the Energy Department reported. Inventories held in large terminals and refineries along the Central Atlantic coast fell to 22.9 million last week, the lowest for this time of year since 2008.
The premium for conventional gasoline in New York rose by 1.25 cents to 19.75 cents a gallon over futures on the New York Mercantile Exchange at 11:54 a.m. Prompt delivery gained 7.23 cents to $2.8646 a gallon. Ultra-low-sulfur diesel in the region advanced 0.37 cent to a premium of 15.50 over heating oil futures.
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