N.Y. Gasoline Snaps Rally as Northeast Plant Starts Unit
New York Harbor gasoline fell from the strongest level in six months as a refinery in the U.S. Northeast restarted a unit following a shutdown.
Conventional, 87-octane gasoline weakened 1 cent to a discount of 0.25 cent a gallon below futures on the New York Mercantile Exchange at 9:17 a.m., the lowest level in a week. The spread rallied to a premium of 0.75 cent a gallon on Aug. 23 after Delta Air Lines Inc. (DAL)’s Trainer plant reported the shutdown of a fluid catalytic cracker.
The 185,000-barrel-a-day Pennsylvania refinery operated by Delta subsidiary Monroe Energy LLC began restarting the unit yesterday at about 6:51 a.m. local time, according to a report by Genscape Inc. The company said Aug. 23 that the 52,000-barrel-a-day catalytic cracker was shut and was expected to be back in operation within 48 hours.
Irving Oil Corp.’s Saint John, New Brunswick, refinery reported the shutdown of a 70,000-barrel-a-day catalytic cracker last week. Over half of the refinery’s finished products, including gasoline and diesel, are exported to the U.S. Northeast.
Return of units at the two refineries may add to stockpiles on the U.S. East Coast, which according to government data fell by 2.74 million barrels to 58.5 million in the week ended Aug. 16, the lowest level since March 29.
Ultra-low-sulfur diesel in New York Harbor gained 0.12 cent to a discount of 0.13 cent below ULSD futures on the Nymex. The 3-2-1 regional crack spread, a rough measure of refining margins for gasoline and diesel based on Brent oil in Europe, slid $1.23 to $13.47 a barrel.
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