Gulf Coast Gasoline Weakens as Colonial Pipeline Allocates Line
Gulf Coast gasoline weakened as Colonial Pipeline Co. allocated shipments of the fuel linking the region to the East Coast, leaving supplies stranded at the U.S. refining hub.
Colonial will allocate capacity on its gasoline Line 1 for the segment north of Collins, Mississippi, for cycle 69, the company said in a statement to shippers.
The discount for reformulated, 87-octane gasoline in the Gulf Coast market widened 2.5 cents to 6 cents versus futures traded on the New York Mercantile Exchange at 12:38 p.m., according to data compiled by Bloomberg. Prompt delivery fell 7.41 cents to $2.5363 a gallon.
Hovensa LLC’s St. Croix refinery in the U.S. Virgin Islands returned to normal production levels after finishing maintenance. “Work was completed on several units, including one of the sulfur complexes and the acid plant,” David Roznowski, a spokesman for the company, said in an e-mail yesterday.
Reformulated, 87-octane gasoline in New York Harbor held at a premium of 0.88 cent a gallon against futures.
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