Sept. 27 (Bloomberg) -- Gasoline declined in New York after a 76 percent gain in the fuel’s premium to futures yesterday lured more cargoes from Europe.
Shipments of the motor fuel to the U.S. from Europe are poised to advance 35 percent in the two weeks through Oct. 10, according to a Bloomberg News survey. Prices in New York have surged as inventories along the East Coast are at the lowest level since October 2008.
The premium for reformulated, 87-octane gasoline in New York Harbor dropped 5.5 cents to 24.5 cents a gallon versus futures traded on the New York Mercantile Exchange at 3:38 p.m., according to data compiled by Bloomberg. Yesterday it rose to 30 cents, the highest level since Sept. 11. Prompt delivery gained 0.82 cent to $3.3893 a gallon.
“You’ve got Boston, Providence, New Haven, Bridgeport, and Newburgh all having gasoline supply issues,” said Eugene A. Guilford, Jr., president of the Independent Connecticut Petroleum Association, adding that low supplies in New Haven and Bridgeport last week forced suppliers to go out of state to resupply.
East Coast stocks of reformulated gasoline, or RBOB, dropped to 13.7 million barrels last week, the lowest level since Oct. 3, 2008, according to the Energy Department.
Traders and oil companies booked 16 tankers for the Europe-U.S. route for the two weeks to Oct. 10, and 11 more probably will be hired, according to the median estimate in a survey of eight shipbrokers and traders yesterday who specialize in transporting gasoline. That’s seven vessels more than last week’s total and the most shipments since Sept. 12, prior surveys showed.
“The resupply has been spotty,” Guilford said.
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