NY Harbor jet hits record highs amid shortage

New York Harbor jet cash prices soared to consecutive daily record highs for the past two weeks as a lack of transatlantic and domestic imports perpetuated prompt regional shortages.

Since 24 March Buckeye and barge jet prices rose by $3.22/USG to close at $7.58/USG on 4 April as rising cash differentials outpaced declining futures. Jet differentials increased by $3.83/USG to May Nymex +$4.03/USG over the same period as bids struggled to find sellers in the spot market. The record rise in prompt cash values drove the forward curve into steep backwardation at $1.10/USG every five days from the prompt timeframe through late April.

The arbitrage from the US Gulf coast to New York Harbor was open on paper the past two weeks as a result of the strong gains in New York Harbor and relatively stable cash differentials in the Gulf coast. Regional spreads grew by $3.44/USG to a record high at $3.79/USG over the same time period. Despite the wide-open arbitrage, the Colonial pipeline distillates segment extending from Pasadena, Texas, to Greensboro, North Carolina, remained unallocated, while Colonial line space value was negative at -0.65¢/USG through yesterday.

Global transatlantic cargo shipments heading to New York Harbor rose from zero in February to 123,600 tons in March, but those imports are not scheduled to arrive until mid to late April and early May, according to Vortexa.

Regional jet stocks fell to a ten-week low during the last week of March at 7.6mn bl and were 20pc below the five-year average, according to data from the Energy Information Administration.

By Stephanie Crawford