U.S. Northeast Gasoline Snaps Rally on Irving Restart

Gasoline in the U.S. Northeast fell from a seven-week high as Irving Oil Corp.’s Saint John refinery, a major supplier to the region, restarted a unit after week-long maintenance.

Reformulated, 84-octane gasoline, or RBOB, in New York Harbor weakened 0.25 cent to 4.5 cents a gallon above futures on the New York Mercantile Exchange at 1:53 p.m. after climbing yesterday to the highest level since Sept. 13. Conventional, 83.5-octane gasoline, or CBOB, slipped 0.5 cent to a premium 4.25 cents a gallon, according to data compiled by Bloomberg.

Differentials narrowed as Irving started a 70,000-barrel-a-day fluid catalytic cracker that had been shut since Oct. 29 at the refinery in New Brunswick. The maintenance went as planned, Samantha Robinson, a company spokeswoman in Saint John, said in an e-mail.

The refinery, which has a capacity of almost 300,000 barrels a day, exports more than half of its refined products, including gasoline and diesel, to the U.S. East Coast. A fluid catalytic cracker upgrades vacuum gasoil into lighter petroleum products such as gasoline and jet fuel.

No. 54 jet fuel in New York declined 0.5 cent to a discount of 1.5 cents a gallon, while ultra-low-sulfur diesel in the region fell 0.13 cent to parity with Nymex futures.

The area’s 3-2-1 crack spread, a measure of refining margins for gasoline and diesel based on Brent oil in Europe, climbed 13 cents to $7.07 a barrel. That’s the fifth consecutive advance, the longest string of gains since July, according to data compiled by Bloomberg.

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