N.Y. Diesel Slides as Area Refineries Boost ProductionChristine Harvey
Spot diesel slid to a two-month low in New York as U.S. East Coast refiners boosted production of the fuel by the most in 18 months, adding to area stockpiles.
Ultra-low-sulfur diesel in New York Harbor dropped 0.13 cent to 0.13 cent a gallon below futures on the New York Mercantile Exchange at 1:58 p.m., the weakest since Sept. 25, according to data compiled by Bloomberg.
Distillate production on the U.S. East Coast, referred to as PADD 1, rose 75,000 barrels a day to 347,000 in the week ended Nov. 29, according to data compiled by the U.S. Energy Information Administration, the statistical arm of the Energy Department. Stockpiles of the fuel swelled 1.5 million barrels to 36.1 million barrels, the first gain in six weeks.
Output increased after Phillips 66’s 238,000-barrel-a-day Bayway, New Jersey, refinery, the largest plant in the New York Harbor, the delivery point for Nymex futures, boosted rates following seasonal maintenance that included several units.
Reformulated, 87-octane gasoline, or RBOB, in New York retreated 0.12 cent to 1.25 cents a gallon below futures. Conventional, 83.5-octane gasoline, or CBOB, was unchanged at a discount of 1.25 cents.
Gasoline stockpiles on the U.S. East Coast added 752,000 barrels to 54.3 million last week, a second consecutive advance, according to EIA data. Production was unchanged.
The 3-2-1 crack spread on the East Coast, a rough measure of refining margins for gasoline and diesel based on benchmark Brent oil in Europe, added 15 cents to $7.17 a barrel. The crack spread on the Gulf Coast, based on West Texas Intermediate oil in Cushing, Oklahoma, slipped 55 cents to $12.78 a barrel.
The price gap between gasoline on the Gulf Coast and New York was 21.86 cents a gallon, compared with 8.5 cents a gallon for diesel, according to data compiled by Bloomberg.
Conventional CBOB gasoline was unchanged on the Gulf Coast, along with diesel.