Gasoline, Heating Oil Futures Rise on Brent Rally, Weaker Dollar
Gasoline rose in New York on speculation refinery outages may tighten supply and as Brent crude in London rallied.
Futures gained as much as 1.5 percent as Valero Energy Corp.’s 310,000-barrel-a-day refinery in Port Arthur, Texas, had a power disruption causing unit shutdowns yesterday. The U.S. currency touched a one-month low against the euro. Brent oil rose as a report that Iranian submarines had entered the Red Sea increased concern that Middle East tensions would spread.
“Products are getting led up by Brent and on the stronger euro,” said Phil Flynn, vice president of research at PFGBest in Chicago.
Gasoline for July delivery advanced 1.95 cents, or 0.7 percent, to $2.9694 a gallon at 10:01 a.m. on the New York Mercantile Exchange.
Brent crude gained 75 cents to $115.23 a barrel on the London-based ICE Futures Europe exchange. The dollar sank 0.6 percent to $1.4666 versus the euro, the lowest intraday level since May 5.
“The dollar is getting whacked this morning,” said Dominick Chirichella, senior partner at the Energy Management Institute in New York.
Gasoline stockpiles probably rose 1.05 million barrels last week, according to the median estimate of 14 analysts in a survey by Bloomberg News. Inventories of distillates, including diesel and heating oil, likely increased 1.25 million barrels.
The Energy Department is scheduled to report last week’s inventories at 10:30 a.m. tomorrow in Washington.
Regular gasoline at the pump fell 1 cent to $3.761 a gallon, AAA said on its website.
Heating oil for July delivery added 0.96 cent, or 0.3 percent, to $3.027 a gallon on the exchange.
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