New York Harbor barge diesel prices rose to multi-year highs on Wednesday as futures increased on tensions in the Middle East and ongoing supply concerns.
Barge ultra-low sulfur diesel (ULSD) prices grew by 24.07¢/USG to $4.87/USG, the highest point since November 2022. Cash differentials increased by 0.75¢/USG to settle at 6.75¢/USG premium over the Nymex contract. Differentials remained historically high so far this month, boosted by bullish futures and widening backwardation in the front month Nymex spread.
Gains in the futures market coincided with declining Atlantic coast distillate inventories over the past month. Stocks dropped to 19.3mn bl the last week of August, according to Energy Information Administration (EIA) data, the lowest point since at least 1990. Distillate stocks on the Central Atlantic coast, which includes New York Harbor, averaged 11.3mn bl last month, compared with 13.2mn bl a year earlier and 18.4mn bl in the same period of 2024.
Higher exports from New York Harbor contributed to thinner stock levels last month and could continue impacting regional volumes as diesel demand begins rising this month. Diesel cargo loadings totaled about 1.9mn bl in August, according to vessel tracking service Vortexa, compared with about 370,000 bl a year earlier. Traders noted an export cargo traded below the barge market on Wednesday.
At the same time, regional production could also impact supply levels this month, with Irving Oil's 320,000 b/d Saint John refinery in New Brunswick, Canada, scheduled to undergo maintenance from 8 September through 18 November. The refinery plays a critical role in supplying refined products to the northeastern US and has been the largest source of US Atlantic coast ULSD imports over the past decade, accounting for more than 27pc of total imports to the region, according to Vortexa data.
