Colonial distillate line space strengthens as needed, vast local spreads
Distillates line area on the Colonial Pipe enhanced 2 cents Tuesday on solid demand to send item to New york city as well as a large spread in between New York Harbor as well as the United States Gulf Coastline.
Platts evaluated line space on Colonial Pipe's Line 2 at plus 6 cents/gal, up 2 cents from where it has actually been for three straight days.
Market sources said the additional line area market was active Tuesday as Colonial Pipe alloted the 14th cycle for Line 2 and home heating oil rolled to the 13th cycle, where ULSD and also jet have been trading considering that completion of February.
Pipeline cycles are assigned when requests exceed capability. The 1.16 million b/d Line 2 brings diesel, jet gas and also heating oil from Pasadena, Texas, to Greensboro, North Carolina. At Greensboro, Line 2 links with the 885,000 b/d multiproduct Line 3, which ends in Linden, New Jersey.
Heating oil and also ULSD need in New york city Harbor has been strong because of abnormally cold conditions, creating costs there to strengthen, while sources said the Gulf Shore markets have been relatively weak. This has brought about the up-down, or the spread in between NYH and also USGC, to broaden for all distillate markets.
www.irooildrilling.com heating oil up-down was 12.5 cents Tuesday, the jet was 17.5 cents and also ULSD was 39.65 cents. The ULSD up-down has just been larger 8 times since the beginning of 2014.
It set you back approximately 4.50 cents/gal to ship fuel up the Colonial Pipeline.
The Gulf Coastline high sulfur heating oil market was peaceful Tuesday on the first day of a brand-new cycle. Platts assessed heating oil with up to 2,000 ppm sulfur at NYMEX April ULSD futures contract minus 22.75 cents/gal, up 75 points/gal.
New York Harbor high sulfur heating oil differentials fell to minus 10.25, while ultra reduced sulfur home heating oil differentials stayed level at a record-high plus 27 cents/gal.
One market source claimed there were no real deals on the market for reduced sulfur heating oil in New york city, which has a maximum 500 ppm and also is the specification required for numerous Northeastern states.