1. Gasoline and distillate prices surged amid supply concerns and record high settlements of over 100/bl on Nymex crude futures. Refinery problems kept operations at 83.5pc of capacity. An explosion at Alon's Big Spring refinery in Texas will disrupt operations there for up to two months, putting additional pressure on Gulf coast supplies. 2. Ultra-low sulphur diesel (ULSD) prices led gains in middle distillates. ULSD values on the Atlantic coast rose by up to 13￠/USG driven higher by strength on Nymex heating oil futures and a shortage of supply. ULSD stocks were at their lowest level since May 2007, after three months of shipments from the Atlantic coast to Europe. And Gulf coast diesel supplies were limited, following recent exports to Europe and Latin America. Gulf coast ULSD continued to trade at strong premiums to heating oil, where prices and demand lagged (see graph).
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