Gasoline in New York Gains to Nine-Month High on Plant Shutdowns

New York gasoline’s premium to futures rose to a nine-month high as the shutdown of refineries supplying the region strained inventories at the peak of the U.S. demand season.

The fuel made to East Coast specifications gained for a third straight day. Hovensa LLC’s St. Croix refinery in the U.S. Virgin Islands and the Trainer refinery in Pennsylvania, now owned by a subsidiary of Delta Air Lines Inc., both shut before the start of the driving season.

There are “tight supplies, as it is difficult to make,” said Andy Lipow, president of Lipow Oil Associates LLC in Houston, wrote in an electronic message. “The market is seeing the effect of Trainer and Hovensa shutdowns.”

The premium for reformulated, 87-octane gasoline, or RBOB, in New York Harbor increased 3 cents to 16.5 cents a gallon versus futures traded on the New York Mercantile Exchange at 3:17 p.m., according to data compiled by Bloomberg. The spread was the widest since Sept. 8. Prompt delivery fell 1.01 cents to $2.7151 a gallon.

PetroEcuador said production at its Esmeraldas refinery, Ecuador’s biggest, was halted today after a power failure.

State-owned PetroEcuador is investigating the damage at the refinery, which has an output capacity of 110,000 barrels a day, and doesn’t know when it will restart production, Paulina Arias, a company spokeswoman, said today by telephone from Quito.

The premium for ultra-low-sulfur diesel versus Nymex heating oil futures in the Gulf Coast gained 0.88 cent to 6.88 cents, the highest level for the fuel since April 17.

The U.S. exported about 34,000 barrels of distillate a day to Ecuador in March, according to Energy Department data.

Before it's here, it's on the Bloomberg Terminal. LEARN MORE