New York Harbor Jet Fuel Slumps to 4-Month Low on Supply
Supplies of the fuel on the East Coast, the PADD 1 region, grew by 640,000 barrels to 9.71 million in the week ended March 15, the most for this time of year since 2010, according to Energy Information Administration data compiled by Bloomberg.
New York Harbor No. 54 jet fuel fell 0.87 cent to a 5.13- cent premium against futures traded on the New York Mercantile Exchange at 2:07 p.m., the narrowest differential since Dec. 18, data compiled by Bloomberg show.
The spread has narrowed 14.37 cents since its year-high of 19.5 cents on Jan. 22. East Coast stockpiles have grown by more than 1 million barrels, or 12 percent, in the past eight weeks, according to the EIA.
Some of the increase follows the startup of a fluid catalytic cracker at Delta Air Lines Inc. (DAL)’s 185,000-barrel-a-day Trainer, Pennsylvania, refinery. Work on the unit began at the end of December and finished in early February, said Trebor Banstetter, a Delta spokesman in Atlanta.
Trainer accounts for nearly 14 percent of East Coast refining capacity, which is about 1.29 million barrels, according to data compiled by Bloomberg.
Reformulated gasoline in New York Harbor weakened 0.75 cent to a discount of 19.13 cents against futures, while ultra-low- sulfur diesel fuel was unchanged at a premium of 10 cents versus heating oil futures.
The 3-2-1 crack spread in New York, a measure of refining profitability for gasoline and diesel fuel based on Brent oil in Europe, dropped $1.31 to $14.37 a barrel, a second consecutive daily decline.
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