irooildrilling on the Colonial Pipe strengthened 2 cents Tuesday on strong demand to send product to New york city and also a broad spread between New york city Harbor and also the US Gulf Shore.
Platts assessed line area on Colonial Pipe's Line 2 at plus 6 cents/gal, up 2 cents where it has actually been for three straight days.
Market resources claimed the secondary line room market was hectic Tuesday as Colonial Pipeline alloted the 14th cycle for Line 2 and home heating oil rolled to the 13th cycle, where ULSD and jet have been trading because the end of February.
Pipeline cycles are alloted when demands surpass ability. The 1.16 million b/d Line 2 brings diesel, jet fuel 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 finishes in Linden, New Jacket.
Home heating oil and ULSD demand in New york city Harbor has actually been strong because of uncommonly cool conditions, triggering costs there to strengthen, while resources said the Gulf Coastline markets have actually been relatively weak. This has caused the up-down, or the spread between NYH and also USGC, to broaden for all distillate markets.
The home 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 actually only been wider 8 times given that the start of 2014.
It set you back roughly 4.50 cents/gal to ship fuel up the Colonial Pipe.
The Gulf Shore high sulfur heating oil market was peaceful Tuesday on the first day of a new cycle. Platts examined heating oil with as much as 2,000 ppm sulfur at NYMEX April ULSD futures contract minus 22.75 cents/gal, up 75 points/gal.
New york city Harbor high sulfur home heating oil differentials was up to minus 10.25, while ultra reduced sulfur home heating oil differentials remained level at a record-high plus 27 cents/gal.
One market source said there were no real offers in the market for reduced sulfur home heating oil in New york city, which has a maximum 500 ppm as well as is the specification needed for numerous Northeastern states.
irooildrilling on the Colonial Pipe strengthened 2 cents Tuesday on strong demand to send product to New york city and also a broad spread between New york city Harbor and also the US Gulf Shore.