The differences in market conditions between the US East Coast (PADD 1) and US Gulf Coast (PADD 3) have prompted the latter region to send refined products to the former using Jones-Act vessels, as discussed in the Jan. 27 Digest. Multiple vessels have recently been reported to have brought gasoline and ULSD from PADD 3 to the lower PADD 1 state of Florida, which has caused ULSD stocks in the Lower Adantic to build by 2.15MM bbl compared to Jan. 3 levels to 12.66MM bbl for the week ending Jan. 17. The EIA's most recent data, however, show the sub-region's ULSD stockpile declined to 9.89MM bbl in the week ending Feb. 21. For the full East Coast, ULSD inventories fell from 37.20MM bbl in the week to Jan. 3 to 34.74MM bbl in the week to Feb. 21. Nevertheless, the major driver of the product movement is the shutdown of Philadelphia Energy Solutions Ltd.'s 335K-b/d refinery due to a massive explosion in June 2019.
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