NYH Weekly: ULSD Rises 11% as Stocks Hit All Time Low


   
Miguel E. Andujar
DTN Refined Fuels Market Reporter

   DAVENPORT, FL (DTN) -- New York Harbor refined-product spot prices rallied 
during the week ended September 4, with ultra-low sulfur diesel (ULSD) rising 
more than 11% as East Coast distillate inventories dropped to their lowest 
level on record. Jet fuel and CBOB regular also posted double-digit weekly 
increases.

   ULSD averaged $4.6447 gallon, up 47.04cts, or 11.27%, from the previous 
week. The weekly average was $2.3277, or 101.78%, above the $2.2870 gallon 
recorded during the comparable week in 2025, DTN data showed.

   The U.S. Energy Information Administration reported Wednesday (9/2) that 
PADD 1 distillate inventories fell by 1.7 million bbl to 19.3 million bbl 
during the week ended August 28, the lowest level recorded since regional 
weekly data began in January 1990. Inventories were 9.4 million bbl lower, or 
32.8% below the same week last year, while distillate imports fell to 49,000 
bpd from 133,000 bpd.

   Despite record-low East Coast inventories, the weekly NYH-USGC ULSD spread 
remained compressed near parity, with New York Harbor ULSD averaging only 
0.77cts above the $4.6370 gallon USGC average. Strong overseas demand for Gulf 
Coast diesel amid restricted flows through the Strait of Hormuz and reduced 
global supply continued to compete with movements toward PADD 1 through 
Colonial, limiting the incentive for incremental barrels to move north.

   Jet fuel spot prices averaged $4.3388 gallon, rising 59.15cts, or 15.79%, 
from the previous week. Prices were $2.0877, or 95.57%, above the comparable 
2025 level. East Coast jet fuel inventories increased by 200,000 bbl to 11.2 
million bbl and were 800,000 bbl above the 10.4 million bbl reported during the 
same week of the previous year.

   CBOB regular posted the strongest percentage increase of the week, rising 
49.30cts, or 16.41%, to average $3.4974 gallon. The weekly average was $1.3516, 
or 61.04%, above the comparable week in 2025.

   The gasoline increase came as the market rolled to October NYMEX RBOB 
futures and entered the broader fall Reid vapor pressure transition period. New 
York Harbor's physical specification is scheduled to transition from 7.8 RVP to 
12.9 RVP under the Buckeye East calendar on September 16.

   PADD 1 gasoline inventories increased by 300,000 bbl to 52.6 million bbl 
during the week ended August 28 but remained 2.9 million bbl below the 55.5 
million bbl reported during the same week of the previous year. Gasoline 
imports fell to 278,000 bpd from 433,000 bpd the previous week.

   East Coast crude oil inventories increased by 100,000 bbl to 8.5 million 
bbl. However, rRefinery utilization edged down to 86.6% from 86.7% as crude oil 
inputs fell by 9,000 bpd to 788,000 bpd. No refinery flaring events were 
reported in the New York Harbor region during the week.

   This week, Buckeye Partners announced the start of expanded refined-product 
transportation service under Phase 3 of its Michigan/Ohio pipeline expansion, 
providing additional connectivity from Midwest supply points toward eastern 
Pennsylvania and upstate New York. The expansion provides another route for 
Midwest barrels into eastern markets as East Coast distillate inventories stand 
at record lows and the narrow NYH-USGC ULSD spread limits the economic 
incentive for additional Gulf Coast barrels to move north through Colonial.




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