New York gasoline rose after Royal Dutch Shell Plc’s Nigerian unit declared force majeure on a light, low sulfur grade used by U.S. East Coast refiners to produce fuel.
Shell said in an e-mailed statement that loadings for this month and next must be revised because of multiple pipeline fires. The East Coastimported 322,000 barrels of crude a day in March from Nigeria, about 32 percent of total imports to the region, according to the most recent Energy Department data.
“The loss of Bonny light will impact part of that supply and as a result, can drive gasoline prices higher,” said Andy Lipow, president of Lipow Oil Associates LLC in Houston.
The discount for conventional, 87-octane gasoline in New York Harbor narrowed 2.38 cents to 10.75 cents a gallon versus futures traded on the New York Mercantile Exchange at 11:46 a.m., according to data compiled by Bloomberg. Prompt delivery rose 2.44 cents to $2.9109 a gallon.
By Paul Burkhardt
To contact the reporter on this story: Paul Burkhardt in New York at pburkhardt@bloomberg.net.
To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net.
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