Gasoline Gains in New York Harbor Before Sandy Hits East
Gasoline strengthened in the New York Harbor market on speculation Delaware, New Jersey and Pennsylvania refineries will shut as Hurricane Sandy approaches the region.
Five East Coast plants, with a combined capacity of about 1.15 million barrels a day, may be affected by the storm, according to Andy Lipow, president of energy consultant Lipow Oil Associates LLC in Houston.
The refineries include Philadelphia Energy Solutions’ Philadelphia; PBF Energy Inc. (PBF)’s Paulsboro, New Jersey and Delaware City, Delaware; Monro Energy LLC’s Trainer, Pennsylvania, and Phillips 66 (PSX)’s Linden, New Jersey plants.
Sandy, a Category 1 storm with winds of 75 miles (121 kilometers) an hour at 2 p.m., was 430 miles south-southeast of Charleston, South Carolina, moving north at 7 mph. It may shutter plants for five to seven days due to pre-storm closures and power outages, Roger Read, an energy analyst with Wells Fargo & Co. in Houston, said today in a note to investors.
Reformulated gasoline to be blended with ethanol gained 0.25 cent to trade at a premium of 2 cents a barrel over futures on the New York Mercantile Exchange at 2:57 p.m. in New York. Prompt delivery increased by 2.52 cents to $2.7191 a gallon.
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