N.Y. Gasoline Strengthens as Crude Inventory Drop Beats Forecast

New York gasoline rose to its largest premium in more than a month after the government reported crude inventories fell the most in a decade last week.

The Energy Department reported supplies fell 10.6 million barrels to 323.6 million last week. It was the largest decline in barrels since Feb. 16, 2001, and almost five times the size of the 2.13 million-barrel drop predicted by the median of 12 analysts in a Bloomberg News survey.

Reformulated, 87-octane gasoline, or RBOB, in New York rose 0.25 cent to a premium of 1.63 cent a gallon versus futures traded on the New York Mercantile Exchange at 11:59 a.m., the biggest premium since Nov. 16, according to data compiled by Bloomberg. Prompt delivery gained 2.55 cents a gallon to $2.618.

The premium for ultra-low-sulfur diesel fuel versus heating oil futures fell 0.62 cent to 3.38 cents a gallon in New York.

The discount for conventional, 87-octane gasoline in the Gulf Coast narrowed 0.25 cent to 6 cents a gallon as of 11:25 a.m. in New York.

To contact the reporter on this story: Colin McClelland in Toronto at cmcclelland1@bloomberg.net

To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net.

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