New York Gasoline Snaps 7-Day Decline on Refinery WorkChristine Harvey
New York Harbor gasoline strengthened for the first time in more than a week as refiners including Delta Air Lines Inc. and Philadelphia Energy Solutions conducted work at plants on the U.S. East Coast.
Delta’s Trainer refinery in Pennsylvania, which last month shut a fluid catalytic cracker, is expected to need until the last week of January to complete repairs, according to two people familiar with operations. A hydrodesulfurization unit and a cumene unit shut this month for planned maintenance at the Philadelphia refinery, regulatory filings show.
A separate section of the Philadelphia plant is expected to shut for 60 days of work next week, according to a separate person familiar with operations. That may shrink supplies on the East Coast, where the Trainer and Philadelphia plants represent about 42 percent of refining capacity. The sites can process a combined 540,000 barrels a day.
Reformulated 84-octane gasoline in New York gained 0.5 cent to trade at a discount of 1.5 cents a gallon to futures on the New York Mercantile Exchange at 3:14 p.m., the first advance since Jan. 10. Conventional gasoline to be blended with ethanol in New York rose 0.58 cent to 1.52 under futures.
Ultra-low-sulfur diesel gained 0.62 cent to trade at 5.5 cents above heating oil futures. The East Coast’s stockpiles of distillates, including heating oil and diesel, retreated 1.7 percent to 42.5 million barrels last week, the Energy Information Administration, an agency of the Energy Department, said Jan. 16.
Motor-fuel supplies rose 1 percent to 53.4 million barrels as refineries in the area processed about 1.1 millions barrels of crude and other feedstock a day. The 3-2-1 crack spread, a measure of New York Harbor refining profitability based on Brent oil in Europe, rose 94.45 cents to $8.7702 a barrel at 3:52 p.m., the highest level since Jan. 11.