RBOB futures up sharply as Hess announces Port Reading, New Jersey, closure
London (Platts)--28Jan2013/1211 pm EST/1711 GMT
NYMEX RBOB futures rallied sharply during morning US trade on Monday
following Hess' decision to sell its US oil terminal business and close the
70,000 b/d refinery at Port Reading in New Jersey.
The refinery is scheduled to be closed by the end of February, the
company said in a statement.
The front-month February RBOB contract was up 6.79 cents from Friday's
settle at $2.9433/gal, after rallying sharply in electronic trading
immediately ahead of the 9:00 a.m. (1400 GMT) NYMEX open.
Earlier the contract hit a high of $2.9442/gal, its highest level since
October 12, 2012.
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The contract jumped nearly 6 cents in under 10 minutes in the wake of
the news, to open US trading 5.43 cents higher at $2.9297/gal.
"While a relatively small refinery, the Port Reading plant does
represent local supply to the New York Harbor delivery market," Tim Evans,
commodities analyst at Citi Futures Perspective, said in a note.
The news had little immediate impact on heating oil futures, which were
trading 43 points lower at $3.0525/gal.
Sources said that, so far, the announcement of the refinery's closure
has also had minimal impact on physical spot prices. New York Harbor spot
RBOB was heard trading at NYMEX February RBOB minus 1 cent for delivery
January 31, unchanged from Platts assessment Friday (see story at 16:20 GMT).
The front-month RBOB contract has jumped more than 20 cents since
January 15 as upcoming refinery turnarounds and an unexpected draw in US
gasoline stocks last week have boosted bullish sentiment.
US Atlantic Coast gasoline stocks fell 1.7 million barrels over the week
ending January 18, data from the US Energy Information Administration showed
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