Canada exported a record amount of gasoline and blending components to the US Atlantic coast in January, driven by rising prices in the US and a growing product supply deficit in the New York Harbor region. As much as 200,000 b/d of gasoline and blending components loaded from Canada to the US Atlantic coast last month, up from 150,000 b/d in December and 160,000 b/d in January 2020, according to Vortexa estimates. At 200,000 b/d, January export loadings were the highest since at least February 2018, when Vortexa data began. Canadian exports grew year-on-year even as one of the country's main exporters, North Atlantic's 115,000 b/d Come by Chance refinery, has been idled since April. Around 83pc of total exports, or 167,000 b/d, originated from Saint John, New Brunswick, where Irving Oil operates a 300,000 b/d refinery.
Imports rose at a time of outright price gains and strong physical markets. New York Harbor Buckeye pipeline CBOB price averaged $1.54/USG in January, after staying below $1.40/USG for the preceding 10 months. While cash prices mostly followed Nymex RBOB futures higher, regional physical markets were likewise firm, with differentials averaging a premium of 1.14¢/USG during January. New York Harbor gasoline mostly traded at discounts to the Nymex benchmark a year earlier. Rising imports from Canada highlights the New York Harbor region's growing reliance on waterborne supplies. Local refiners produced around 51,000 b/d of finished gasoline in January, down from 62,000 b/d a year earlier. Logistical hurdles and a lack of storage space prevented a large amount of Gulf coast gasoline from reaching the Atlantic coast market on the Colonial pipeline, The US Atlantic coast also drew around 240,000 b/d of gasoline and blending components from Europe in January, up from 205,000 b/d in December and 210,000 b/d in January 2020.