New York Gasoline Demand Seen by Morgan Stanley Luring Cargoes
Tankers able to haul 250,000 barrels of oil products will be used to transport cargoes to New York Harbor from the U.S. Gulf Coast after the waiver of a rule on Nov. 2, according to Morgan Stanley. (MS)
The Department of Homeland Security said Nov. 2 it waived part of a requirement within the Jones Act, allowing non-U.S. vessels to haul fuel between the nation’s ports until Nov. 13. Costs for tankers shipping gasoline will vary between $2.30 and $2.50 a barrel depending on vessel age, Hussein Allidina, Morgan Stanley’s New York-based head of commodities research, said in an e-mailed report today.
Prices of reformulated gasoline blendstock for oxygenate blending, or RBOB, in New York Harbor after the close of business on Nov. 2 were at a premium of almost $5.50 a barrel to those on the Gulf Coast, “incentivizing cargoes to flow north,” Morgan Stanley said in the report.
To contact the reporter on this story: Rob Sheridan in London at firstname.lastname@example.org
To contact the editor responsible for this story: Alaric Nightingale at email@example.com