Spot diesel fuel in New York Harbor strengthened relative to futures after Delta Air Lines Inc. (DAL) shut a unit at its Trainer refinery and regional stockpiles fell to the lowest seasonal level in more than two decades.
The differential expanded after Delta shut a diesel heater following a small fire Nov. 2 at the 185,000-barrel-a-day Pennsylvania refinery. The company is investigating the cause, said Adam Gattuso, a spokesman at the plant.
Stockpiles of diesel in the Central Atlantic region known as PADD 1B, including New York Harbor, slipped 1.9 million barrels to 18.8 million barrels in the week ended Nov. 1, the lowest level for the time of year in government data going back to 1990, according to Energy Information Administration data. That was the eighth consecutive decline.
Inventories dropped as refiners including Phillips 66 and PBF Energy Inc. carried out seasonal maintenance that reduced production and as Colonial Pipeline Co. allocated shipments on lines serving New Jersey.
The 3-2-1 crack spread in New York, a rough measure of refining margins for gasoline and diesel based on Brent oil in Europe, gained $1.27 to $8.19 a barrel, the highest level since Sept. 13, according to data compiled by Bloomberg.
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