Gulf Coast gasoline weakened as the National Hurricane Center reported “remnants” of Tropical Depression Seven in the Caribbean have a low chance of becoming a cyclone, reducing the threat of an interruption to U.S. refinery operations.
The system has a 20 percent chance of becoming a tropical cyclone during the next 48 hours as it moves westward, the center said in an outlook issued at 2 p.m. New York time. The center in an earlier advisory gave the system a 10 percent chance of turning into a cyclone.
The premium for reformulated gasoline, or RBOB, in the Gulf Coast dropped 3.38 cents to 2.25 cents a gallon versus futures traded on the New York Mercantile Exchange at 1:59 p.m. in New York, data compiled by Bloomberg showed. Prompt delivery fell 3.77 cents to $3.0333 a gallon.
The weather system is producing disorganized showers and thunderstorms from the central Caribbean northward to Hispaniola and Jamaica, the NHC report showed.
European gasoline rose to a three-month high, reducing the incentive to export the fuel to the U.S.
Gasoline barges for immediate loading in Amsterdam-Rotterdam-Antwerp traded at $1,071 a metric ton, according to a survey of traders and brokers monitoring the Argus Bulletin Board. That compares with $1,057 to $1,062 on Aug. 10 and is the most since May, according to data compiled by Bloomberg.
The discount for conventional, 87-octane gasoline in New York Harbor narrowed 0.5 cent to 3.25 cents a gallon versus futures.
Imports of gasoline to the East Coast dropped to 383,000 barrels a day in the week ended Aug. 3, the lowest level for shipments to the region since April, the Energy Department reported.