Demand to Haul Gasoline on Colonial Weak for Latest 5-day Period
NEW YORK, June 29 (Reuters) - Colonial Pipeline, the largest U.S. refined products system, said on Thursday nominations on its main gasoline line were below capacity for the second consecutive five-day shipping period as inventories in the East Coast remain elevated.
The pipeline will not be rationing space on its gasoline line during the period as it typically does when nominations exceed capacity, a Colonial spokeswoman told Reuters.
The company said last week demand on its main gasoline line that hauls about 1.3 million barrels per day (bpd) of the motor fuel was the weakest in nearly six years.
The conduit, which is a vital source of supply for the southeast and populous East Coast regions, has seen demand fall amid bloated inventories in the East Coast and as Gulf coast refiners and traders increasingly choose to export barrels instead.
While overall gasoline inventories fell last week, stockpiles in the East Coast, or PADD 1, increased and sit well above the five-year average.
Gasoline exports out of the Gulf Coast, meanwhile, have been robust amid demand from Latin America and Mexico in particular. The four-week average for finished motor gasoline exports soared to 600,000 barrels per day (bpd) from 379,000 bpd a year earlier, data from the U.S. Department of Energy showed on Wednesday.
On Thursday, Gulf Coast cash gasoline differentials strengthened as trade rolled to cycle 38, the latest five day shipping period on Colonial Pipeline. (Reporting by Devika Krishna Kumar in New York; editing by Diane Craft)
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