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Saturday, February 27, 1999

Crude, refinery cuts boost US spot residual again 

Reuters  
New York, February 26: US spot residual fuel prices continued to move higher again Thursday in quiet trade, boosted by recent cuts in refinery production, some lingering cold in the East and further gains in crude, industry sources said.

"Demand has been horrible, but production has been thin," said one cash trader, noting the Arctic cold this week stirred better East Coast utility burns.

Traders said refinery maintenance and some run cuts due to poor margins have helped tighten the market, particularly at the US Gulf, despite a fairly mild winter that has trimmed demand and led to ample East Coast stocks.

WSC expects slightly below-normal East Coast temperatures Thursday to climb to several degrees above normal Saturday through Monday. Midwest readings will rise to as much as 20 degrees F above seasonal over the next five days. In Texas, the mercury will vary from three to 12 degrees above normal for the period. The West will see above- to much above-normal temperatures into early next week.

A private six- to 10-day forecast released Thursday calls for above- to much above-normal temperatures for the eastern half of the nation, with normal to below-normal readings expected in the West. The 11- to 15-day outlook shows below-normal temperatures in the upper Midwest and Northeast, with normal levels expected in the South and rest of the Midwest. Normal to above-normal readings will blanket the western half of the U.S.

In New York Harbour, physical one percent climbed 20 cents to about $9.00 a barrel, again helped by crude and a strong carry to paper. March paper gained 10 cents to $9.65-90, while April was talked 40-45 cents over March.

NYH 0.3 percent high pour and low pour notionally were 15 cents higher at $10.50 and $11.50, respectively.

High sulphurs in New York also gained slightly, with 2.2 percent talked up a quarter at about $8.50. No NYH deals were reported.

At the U.S. Gulf, one percent was 25 cents higher at about $9.25, while three percent jumped 50 cents to $8.75-9.00 on some decent buy interest.

Traders said a prompt USG 1.75 percent deal was done late Wednesday at $9.45 (FOB Chalmette, La.), but other details were not known.

New York city gate swing gas slipped 10 cents Thursday to $2.00/mmBtu, or $12.60 a barrel equivalent. Gas at Henry Hub, the NYMEX delivery point in Louisiana, was four cents lower at $1.69/mmBtu, or $10.65.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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