US Gulf and Atlantic Coast gasoline differentials weaken as Hurricane Laura approaches

New York — US Gulf and Atlantic Coast gasoline differentials slipped Aug. 25 as the region prepared for the arrival of Hurricane Laura.

S&P Global Platts assessed USGC 87 octane CBOB at NYMEX October RBOB futures plus 1.75 cents/gal after multiple trades at that level in the Platts Market on Close assessment process. That was down 75 points on the day.

Conventional unleaded gasoline along the Gulf Coast also fell 75 points to futures plus 3.25 cents/gal.

Most regional refineries were either reducing runs or shutting for the duration of the storm, sources said.

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Differentials fell across the Atlantic Coast as Gulf Coast refineries shut down in anticipation of Hurricane Laura making landfall later this week.

New York Harbor barge and Buckeye Pipeline CBOB shed 1.35 cents/gal to NYMEX September RBOB minus 3 cents/gal, while the RBOB differential fell 25 points to futures minus 0.75 cent/gal.

CBOB coming off the Colonial Pipeline in Linden, New Jersey, fell 50 points to September futures minus 4.75 cents/gal while the RBOB differential fell 40 points down to futures minus 0.40 cent/gal.

The falling differentials along the Atlantic Coast may be attributed to ample supply of product in New York, according to a market source.

"I think it's to do with the immediacy of barrels in New York where there is no supply constraint," the source said.

Colonial Pipeline Premium RBOB was heard bid at futures plus 8 cents/gal, establishing an 8.65-cent premium regrade in the region.