U.S. Gulf Gasoline Slides on Biggest Inventory Build Since 2008
Gasoline dropped for a second day in the U.S. Gulf Coast as the area’s stockpiles of motor fuel grew last week the most since 2008 after Hurricane Sandy shut the largest pipeline between the Gulf and the northeast U.S.
Supplies in the region, known as Padd 3, increased by 4.62 million barrels to 75.1 million in the week ended Nov. 2, the Energy Department reported today. That’s the biggest rise since Oct. 3, 2008, and the highest level this year. Total U.S. inventories grew by 2.89 million barrels to 202.4 million, data from the department show.
Reformulated gasoline to be blended with ethanol on the Gulf Coast dropped 0.25 cent to a discount of 11.25 cents a gallon versus futures on the New York Mercantile Exchange at 3:40 p.m., a second consecutive decline.
Colonial Pipeline Co. shut the 825,000-barrel-a-day Line 3, which runs between Greensboro, North Carolina, and Linden, New Jersey, after the storm cut power to fuel distribution terminals in the Linden area.
The same fuel weakened 3 cents in New York Harbor to 20 cents a gallon over futures at 3:14 p.m.
Eighteen tankers carrying petroleum and chemical products are expected to arrive in the area over the next four days, according to the U.S. Coast Guard. Four of the ships are carrying gasoline, and four hold naphtha.
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