NEW YORK, June 22 (Reuters) - Colonial Pipeline Co, the largest U.S. refined products system, said on Thursday that shipping nominations on its gasoline line had fallen below capacity for the first time in nearly six years, driving Gulf Coast cash gasoline prices lower.
The drop in shipping volumes highlights the dire state of oversupply in the East Coast. Gasoline inventories in the region fell by 1.3 million barrels last week to 67.6 million barrels, just shy of the five-year high for this time of year, according to the U.S. Energy Information Administration.
Colonial, which connects the refinery-rich Gulf Coast to the demand-heavy East Coast, said in a shipper notice that it will not be calling for allocations on the next 5-day shipping cycle on its main gasoline line.
M2 conventional gasoline weakened by as much as 2 cents to trade 5 cents per gallon under benchmark gasoline futures on the New York Mercantile Exchange. A1 CBOB in the Gulf Coast also weakened to trade as much as 12 cents below benchmark futures. (Reporting by Devika Krishna Kumar and Jarrett Renshaw in New York; Editing by Chizu Nomiyama)