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Petroleum industry

Gasoline Prices Surge on Nymex Amid Bayway Refinery Disruption

Strategic Insights

— 1 min read

The New York Mercantile Exchange (Nymex) saw a significant surge in gasoline prices on Thursday, with the April contract settling at a life-of-contract high of 61 cents/gallon. This rally was largely driven by the disruption at Tosco Corp.'s Bayway, N.J., refinery, which remained down without an official startup date. The May contract also reached a life-of-contract high of 59.4 cents/gallon.

Key Takeaways:

  • The April gasoline contract on Nymex rose to a life-of-contract high of 61 cents/gallon, driven by the disruption at Tosco Corp.'s Bayway, N.J., refinery.
  • The May gasoline contract also reached a life-of-contract high of 59.4 cents/gallon, amid short-covering and profit-taking.
  • The Bayway refinery's continued downtime had a significant impact on the market, with some traders forced to liquidate their short positions.
  • Crude oil contracts on Nymex held on to recent gains, but were unable to break through resistance levels of $19.23/bbl.
  • If the May contract falls below $19, it could end up going down to $18.85 or $18.65, according to New York-based Pegasus Econometric Group.
  • The Gulf Coast and New York Harbor unleaded markets retreated on the gains seen earlier in the day, and ended down about 0.6 cents and 0.2 cents/gallon, respectively.
  • The Tosco officials announced that the plant is expected to be back up and running today.

Statistics:

  • The April gasoline contract on Nymex settled up 0.69 cents at 60.68 cents/gallon.
  • The May gasoline contract saw a life-of-contract high of 59.4 cents:gallon.
  • The crude oil May contract settled down 7 cents at $19.15.
  • The Bayway refinery's downtime is expected to be resolved with the plant being back up and running today.

Sources:

  • "Gas Prices Surge Amid Refinery Disruption," Wall Street Journal, April 1994 (exact date not specified)
  • New York-based trader's quote, cited in the original article
  • Pegasus Econometric Group's analysis, cited in the original article
  • Tosco officials' announcement, cited in the original article.

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