New York-Gulf Coast RBOB Premium Widens to Six-Month HighChristine Harvey
Gasoline in the New York Harbor traded at the biggest premium to the U.S. Gulf Coast in six months as imports to the U.S. East Coast dropped and area refineries processed the least crude oil since March.
The New York Harbor-Gulf Coast spread for reformulated gasoline, or RBOB, widened 2.17 cents to 13.05 cents a gallon at 3:33 p.m., New York’s biggest premium since Feb. 6, according to data compiled by Bloomberg.
The regional gap stretched after a government report showed yesterday that gasoline imports to the U.S. East Coast slipped to 584,000 barrels in the week ended Aug. 2. At the same time, area refineries processed 1.1 million barrels a day of crude and other feedstock, the least since March 22.
Shipments to the East Coast along Colonial Pipeline Co.’s main gasoline line, which transports fuel from Houston to the East, were allocated for cycles 37 to 45, signaling strong pipeline flows. When a company issue an allocation, it means demanded has exceeded a line’s capacity.
The 3-2-1 crack spread in New York, a rough measure of refining margins based on Brent oil in Europe, gained 11 cents to $16 a barrel. The same spread on the Gulf Coast, based on West Texas Intermediate in Cushing, Oklahoma, increased 55 cents to $11.40 a barrel.