Wholesale gasoline prices sold at terminals east of the Rockies, or rack values, recorded some rather significant volatility last week. Responding to sharp price moves by gasoline sold in bulk at the spot level, which trade in basis points against the gasoline futures contract listed on the New York Mercantile Exchange, rack prices at terminals in New York and New Jersey soared more than 4.0 cents per gallon midweek, only to give those gains back as the week advanced.
Meanwhile, Colonial Oil Industries announced last week their decision to roll their effective rack posting time from 12:01 AM ET to the earlier 6:00 PM ET starting January 1, joining a growing group of suppliers that have already made the move.
“We are changing our rack posting time to 6:00 PM ET on January 1. Right now, the numbers are still being released at 12:01 AM ET,” said a spokeswoman from Colonial Oil.
TransMontaigne recently announced their decision to do the same, with the products supplier also implementing the earlier effective time with the 2004 new year. Other suppliers with the earlier rack posting effective times include Crown Central Petroleum Corporation, Flint Hills Resources, Premcor, Global and Western Petroleum, although these companies do not necessarily use the 6:00 PM ET time exclusively at all the terminals where they sell supply. Flint Hills says it uses the earlier posting time “basically at all our Group 3 locations,” as well as in Chicago, Texas and parts of the Southeast. Western said products it sells at the Pine Bend and Roseville, Minnesota terminals were changed to 6:00 PM ET, although it continues to use the midnight posting time elsewhere. Premcor’s early rack postings are at terminals in Memphis, Memphis Apex, Henderson, Knoxville, and Nashville, Tennessee; West Memphis, Arkansas; Greenville, Mississippi; and in Scott City, Missouri at the Cape Girardeau terminal. Global moved almost all of its gasoline rack posting effective times in the New England states to 6:00 PM ET on October 1.
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