New York Jet Fuel Rallies to 7-Week High as Production SlumpsChristine Harvey
Jet fuel in New York harbor strengthened to a seven-week high as production slumped to the lowest level since 2012, drawing stockpiles lower in the region.
No. 54 jet fuel gained 0.5 cent to 4.13 cents a gallon below ultra-low-sulfur diesel futures on the New York Mercantile Exchange at 9:06 a.m., the smallest discount since Sept. 4, according to data compiled by Bloomberg.
Production of the fuel on the U.S. East Coast, known as PADD 1, fell for a third consecutive week to 40,000 barrels a day, the smallest amount since Nov. 9, according to U.S. Energy information Administration data. Stockpiles of the fuel in the area fell 728,000 barrels to 10.7 million during the week ended Oct. 18, the lowest level since Aug. 16, EIA data showed.
Delta Air Lines Inc.’s 185,000-barrel-a-day Trainer refinery in Pennsylvania is carrying out a project that will increase output of jet fuel to 50,000 barrels a day, from 20,000 to 30,000 barrels currently, according to a person familiar with operations, who asked not to be identified because the information isn’t public. The refinery expected to produce about 40,000 barrels a day by the end of the year.
Reformulated, 84-octane gasoline, or RBOB in New York Harbor, was unchanged at 1.25 cents a gallon above Nymex futures, while ultra-low-sulfur diesel dropped 0.08 cent to a 0.05-cent premium.
The 3-2-1 crack spread in New York, based on Brent oil in Europe, dropped 56 cents to $5.82 a barrel, according to data compiled by Bloomberg.