Houston (Platts)--10Dec2012/547 pm EST/2247 GMT
The Atlantic Coast ULSD differential for Buckeye Pipeline rose for the third consecutive day Monday as Colonial Pipeline moved back deliveries in the 64th cycle. Platts assessed Atlantic Coast ULSD for Buckeye at the NYMEX January heating oil futures contract plus 12.75 cents/gal, up 3.25 cents, based on deals heard done off the Colonial Pipeline at plus that level, delivering December 13. At 3:15 p.m. EST (2015 GMT), the NYMEX January contract was assessed at $2.8954/gal, down 2.33 cents. The contract settled at $2.8962/gal, falling 1.91 cents. A New York broker said that product was tight. Article continues below... Request a free trial of: Oilgram News Oilgram News brings fast-breaking global petroleum and gas news to your desktop every day. Our extensive global network of correspondents report on supply and demand trends, corporate news, government actions, exploration, technology, and much more.
The Atlantic Coast ULSD differential for Buckeye Pipeline rose for the third consecutive day Monday as Colonial Pipeline moved back deliveries in the 64th cycle. Platts assessed Atlantic Coast ULSD for Buckeye at the NYMEX January heating oil futures contract plus 12.75 cents/gal, up 3.25 cents, based on deals heard done off the Colonial Pipeline at plus that level, delivering December 13. At 3:15 p.m. EST (2015 GMT), the NYMEX January contract was assessed at $2.8954/gal, down 2.33 cents. The contract settled at $2.8962/gal, falling 1.91 cents. A New York broker said that product was tight.
Article continues below...
Oilgram News brings fast-breaking global petroleum and gas news to your desktop every day. Our extensive global network of correspondents report on supply and demand trends, corporate news, government actions, exploration, technology, and much more.
Over the past three trading days, the differential went up by 7.50 cents. "Offers went off the table and we are waiting for Colonial to deliver," a trader said on Thursday. The next shipment into Linden, New Jersey, off the Colonial Pipeline occurs on Monday, in the 64th cycle. But on Friday, the schedule indicated deliveries were coming in December 8. "Many sold their barrels already," the broker said Friday. For New York Harbor barges, it was assessed at plus 13 cents/gal, up 4 cents, based on trading sources pegging barges at a premium to the Buckeye. Traders also took into market structure into account to assess an arbitrage because it takes 15-20 days to ship on Colonial. The NYMEX February heating oil contract was in contango by 94 points/gal to the front-month contract. The USAC premium to USGC product, or "up-down," was 13.75 cents/gal, up 4.50 cents. The shipping cost on the Houston-to-New York Colonial Pipeline costs 4.509 cents. The premium was above the shipping tariff for the 47th straight trading day.--Wajih Choudhury, wajih_choudhury@platts.com --Edited by Robert DiNardo, robert_dinardo@platts.com
Tweet
@PlattsOil on Twitter