Boston gasoline cargoes felt downward pressure in Thursday morning trade
due to an abundance of gasoline supplies, according to a New England based
trade source.

The trade source said that Boston cargoes for all grades of gasoline were
trading at a 1-cent/gal premium to their New York Harbor counterparts, which
he attributed to “plenty of gas around” Boston.

This is the smallest premium that Boston cargoes have commanded over New
York cargoes since January 23, when S&P Global Platts assessed the spread at
the same level of 1 cent/gal.

The source did specify why Boston now seems awash in gasoline supplies,
but EIA data released Wednesday showed USAC gasoline imports saw a healthy
gain during the week ended April 14, climbing 214,000 barrels, or 44%. These
barrels accounted for the majority of total US gasoline import growth, which
was up 355,000 barrels on the week.

The same EIA data show that week on week USAC refinery capacity
utilization grew more than 7% to reach 84.5%, the strongest refinery figure
since the week ended January 27, when it hit 84.6%. This may also have
contributed to the supply glut in Boston.

While the data showed USAC gasoline stocks fell slightly, inventories for
the entire US climbed to reach 237.67 million barrels.

–Seth Clare, seth.clare@spglobal.com

–Edited by Richard Rubin, richard.rubin@spglobal.com

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