Inventories of ultra low sulfur diesel on the US Gulf Coast hit a four-year low during the week ended December 14, Energy Information Administration data showed Wednesday. USGC ULSD stocks plunged 1.37 million barrels to 30.23 million barrels last week. The last time they were reported lower was November 7, 2014, at 30.03 million barrels. The draw came on the back of USGC production rates falling 30,000 b/d to 2.76 million b/d.
S&P Global Platts Tuesday assessed USGC 62 grade ULSD on Colonial Pipeline down 50 points to January NYMEX ULSD futures minus 11 cents/gal. Nationwide ULSD inventories fell 4.32 million barrels to 104.98 million barrels, the lowest in four weeks, EIA said. That overall stock draw was primarily due to sagging inventories on the Atlantic Coast. EIA said East Coast stocks fell 1.2 million barrels to 32.82 million barrels, the lowest since reaching 32.13 million barrels on July 27.
Offline Colonial ULSD Tuesday was assessed up 20 points to the NYMEX ULSD futures contract plus 40 points, the highest since November 12. Nationwide ULSD production dropped 212,000 b/d to 5.04 million b/d, retreating after reaching its highest level on record the week prior.