Diesel fuel weakened in the New York Harbor as supplies in the region rose to the highest level in more than four months while demand hovered at a seasonal low.
Stockpiles of distillates in the Central Atlantic region, known as PADD 1B, an area that includes the New York Harbor, rose 730,000 barrels a day to 24.4 million in the week ended Jan. 11, according to the Energy Information Administration, the statistical arm of the Energy Department. That’s the highest level since Sept. 7.
Distillate demand of 3.45 million barrels a day in the U.S. is the lowest level for this time of year since 2004, department data showed.
Ultra-low-sulfur diesel fuel in the New York Harbor slipped 0.75 cent to to 4.5 cents a gallon over heating oil futures on the New York Mercantile Exchange at 12:24 p.m., a second consecutive decline.
Reformulated gasoline to be blended with ethanol in New York fell 0.08 cent to trade at a discount of 1.88 cents versus gasoline futures, the widest gap since April 16.
Conventional gasoline in the Gulf Coast was unchanged at 14 cents below futures. Ultra-low-sulfur diesel held at a 0.5 cent premium.