During the Platts Market On Close assessment process, Vitol dropped its price for a 25,000 barrel barge of RBOB for October 19-21 loading FOB New York Harbor from NYMEX November RBOB plus 5.5 cents/gal to RBOB plus 3.25 cents/gal. Morgan Stanley purchased the parcel.
RBOB for barge or Buckeye Pipeline shipment was assessed at 3:15 pm EDT at NYMEX November RBOB plus 3.15-3.25 cents/gal. On Wednesday, RBOB for Buckeye shipments was assessed at plus 5.00-5.30 cents/gal, while that for barge movement was assessed at 4.825 cents/gal.
There were no more offers from Vitol although there was an offer for the same grade and laycan from Hess priced at plus 4.5 cents/gal.
According to the EIA, total gasoline stocks into the US East Coast (PADDI) stood at 54 million barrels for the week ending October 8, compared with 55.6 million barrels in the previous week.
Imports stood at 506,000 b/d last week, compared with 530,000 b/d the week prior, the EIA said. Two years ago, imports into this region stood at 1.144 million b/d, the EIA data showed.
Sources said most of the data released by the EIA was within expectations. "Basically [its] a seasonal number," said one source. But other sources said the latest data was showing that demand had eased.
The EIA reported that total product supplied, which serves as a barometer for gasoline demand, stood at 8.812 million b/d last week, compared with 8.989 million b/d a week earlier. A year ago, product supplied stood at 9.256 million b/d, EIA data shows.
However, trades continued to highlight that the RBOB futures market was in backwardation, something highly unusual this time of the year, when poor demand usually keeps prompt prices on the soft side.
"When has the gasoline market been backwardated in the winter?" said a source. Effectively this implies that the market sees that, despite all the offers that are shown in the region, there is a chronic lack of supply to meet prompt needs, sources said.
Even if supplies are available, prices may be high, or there may be problems in getting the oil to the US East Coast, notably in the case of the allocations along the Colonial Pipeline.
Part of that shortage has been caused by strong prices in Northwest Europe and the Mediterranean seen well before the French strike that is limiting shipments across the Atlantic.
Both regions are regular suppliers into US East Coast markets.
The ongoing French strike, has in part pushed prices higher, even though it has not necessarily curtailed available supplies.
Closure of refineries in the US East Coast this year may have also added to the overall supply tightening, coupled with turnarounds in the region.
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