East Coast Fuel Drops As Philadelphia Refineries Ramp Up
Fuel declined in New York Harbor today as Philadelphia Energy Solutions returned the Point Breeze and Girard Point refineries to full rates and tankers prepared to make deliveries to the U.S. East Coast.
The 355,000-barrel-a-day Philadelphia plants, which make up the largest refining complex on the East Coast, were previously operating at reduced rates because of Hurricane Sandy. About 21 petroleum tankers are set to arrive in New York Harbor over the next four days as Phillips 66’s Bayway refinery and Hess Corp. (HES)’s Port Reading unit remain shut.
“We are producing at full strength and we have been actively engaged with the U.S. Department of Energy helping to relieve gasoline and diesel fuel supply disruptions in the region’s hardest-hit areas,” said Cherice Corley, an Energy Solutions spokeswoman based at the Pennsylvania refinery.
Reformulated gasoline in New York Harbor declined 4.5 cents to trade at a premium of 20 cents a gallon over futures on the New York Mercantile Exchange at 2:36 p.m. Conventional motor fuel fell 9.5 cents to premium of 14.5 cents.
Ultra-low-sulfur diesel fuel weakened 3.75 cents to 12.25 cents over heating oil futures.
Five of the 21 ships headed for New York are carrying gasoline, while five are transporting naptha, four hold crude oil and three are carrying fuel oil, according to Charles Rowe, a spokesman for the U.S. Coast Guard in Staten Island, New York.
The fuel will help to supply the region as the Bayway refinery in New Jersey remains shut while damage to equipment is being repaired. Bayway plans to resume normal operations in two to three weeks, Houston-based Phillips 66 (PSX) said in a statement on its website. The plant has a capacity of 238,000 barrels a day, making it the largest single refinery on the East Coast.
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