New York Harbor ULSK premiums rise to a three-year high after back-to-back cold snaps

Ultra-low sulfur kerosene premiums in New York Harbor rose sharply after recent winter weather events disrupted power grids and boosted heating demand.

Platts, part of S&P Global Energy, assessed US Atlantic Coast ULSK for New York Harbor Barge at NYMEX March ULSD plus $1.45/gallon Feb. 10, based on a trade heard at that level after the Feb. 9 Platts Market on Close assessment process. That is up $1.16/gal since Jan. 26 and the highest prompt assessment since Feb. 6, 2023, when the grade was assessed at a premium of $1.5325/gal.

"Hearing a lot of power generation demand, as temperatures are still cold in the Northeast," a US refined products trader said Feb. 11.

US kerosene stocks have fallen every year since 2019, according to US Energy Information Administration data. US stocks were measured at 1.689 million barrels in 2024, down 981,000 barrels since 2019.

"There are not that many cycles of ULSK moving up to New York, so these batches can attain massive premiums at times," a US refined products trader said Feb. 3.

Last year's data through November indicates another decline, with the 11-month average trending almost 287,000 barrels below the same period in 2024, the EIA said.

The US has been hit with two separate waves of extreme cold in late January and early February.

The impact of the first storm was widespread, hitting the central and eastern US Jan. 24-26, the National Oceanic and Atmospheric Administration said.

The second arctic blast, around the turn of the month, prompted freeze warnings as far south as southern Florida.

USAC refinery utilization rates fell to 80.60% in the week ended Jan. 30, the EIA said, the lowest since April 18, 2025.

ULSK New York Harbor Barge was heard traded previously at a $1/gal premium Feb. 5 and a 79.60 cents/gal premium Feb. 2.

ULSK is hydrotreated kerosene blended with ultra-low sulfur diesel to improve the fuel's cloud and pour points in freezing conditions, which prevents thickening.

ULSK can also be used for power generation, particularly in peaker units that operate during periods of extreme heat or cold.