New York spot gasoline strengthened to a seven-week high on speculation European refinery maintenance is limiting shipments to the U.S. Northeast.
Reformulated, 84-octane gasoline, or RBOB, in the New York Harbor climbed 2.75 cents to 5.75 cents a gallon above futures on the New York Mercantile Exchange at 1:54 p.m., the strongest level since Sept. 13. Conventional, 83.5-octane gasoline, or CBOB, gained 0.37 cent to a premium of 4.5 cents.
Gasoline cargoes to the U.S. from Europe may be limited due to seasonal maintenance, according to a weekly note from Energy Analytics Group Ltd. Outages at Phillips 66 (PSX)’s Bayway, New Jersey, refinery and Irving Oil Corp.’s Saint John plant in New Brunswick may also be supporting prices.
With the capacity to process about 238,000 barrels a day, Bayway is the closest plant to New York Harbor. The 298,800-barrel-a-day Saint John refinery exports over half of its finished products, including gasoline and diesel, to the U.S. northeast, according to Irving’s website.
Ultra-low-sulfur diesel in New York was unchanged at 0.25 cent a gallon above Nymex futures, while No. 54 jet fuel climbed 0.63 cent to a discount of 0.5 cent a gallon.
The 3-2-1 crack spread in New York, a measure of refining margins for gasoline and diesel based on Brent oil in Europe, gained 59 cents to $7.38 a barrel, a two-week high, according to data compiled by Bloomberg.
Gasoline advanced on the Gulf Coast. CBOB added 0.75 cent to 22.25 cents a gallon below futures, while conventional, 87-octane gasoline climbed 1 cent to a discount of 21.25 cents.
The 3-2-1 crack on the Gulf, based on West Texas Intermediate in Cushing, Oklahoma, dropped 26 cents to $9.49 a barrel. The same spread based on Light Louisiana Sweet oil, the U.S. Gulf Coast benchmark, slipped 11 cents to $6.49 a barrel.
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