Chinese Gasoline Attains New York for First Time in Nine Years

Chinese gasoline will attain the U.S. East Coast for the first time in nine years as a rush in New York prices helps ease an excess in Asia.

Trafigura Group Pte. is said to be shipping about 375,000 barrels of gasoline to New York from China and Hong Kong aboard the tanker Marylebone, according to a person familiar with the delivery who wants to be anonymous. The ship delivered Korean alkylate in Houston for the trading company last week before continuing on to the Northeast, U.S. Customs data show.

Prices raised after last month spill on the Colonial Pipeline clogged normal shipments to New York, attracting additional supplies, informed Andy Lipow, president of Lipow Oil Associates in Houston.

“That has enabled people to deliver additional gasoline supplies into New York Harbor. They may have initially thought they’d go elsewhere with it, but they now have a better alternative and they’re going to New York,” he added.

Trafigura’s gasoline shipment to New York pays attention to the delivery of almost 300,000 barrels of premium gasoline to Houston that loaded at Guangzhou aboard the Ardmore Sealifter. That vessel was provisionally booked to Trafigura in last month as well, Galbraith’s fixture data show.

“Extra gasoline cargoes are likely to land in the U.S. in the weeks ahead,” told Adam Longson, Morgan Stanley commodity strategist, today in an e-mailed research note. “The closure of the pipeline temporarily improved import economics and likely stimulated shipments.”

Chinese gasoline exports achieved a record 306,000 barrels a day on June’16. Shipments abroad rose this summer after weather-related damage to roads and pipelines softened domestic consumption, JPMorgan Chase & Co.’s Ying Wang wrote in July’16. Exports declined to 180,000 barrels a day in August’16, customs data show, as Chinese refiners shut units during peak maintenance season.

Trafigura spokeswoman Victoria Dix declined by e-mail to comment on Chinese gasoline deliveries reaching the U.S.