Midwest Gasoline Drops for 10th Day as Inventories Increase

Midwest gasoline declined for a 10th day as inventories of the fuel and refinery activity increased.

Gasoline in the region fell to the lowest level since May 4 after stocks rose 980,000 barrels to 48.7 million barrels last week, according to the U.S. Energy Department. Crude oil inputs to refineries gained 57,000 barrels a day to 3.48 million.

The discount for conventional, 87-octane gasoline in the Midwest, or Group 3, widened 2.75 cents to 13.75 cents a gallon versus futures traded on the New York Mercantile Exchange in New York at 12:45 p.m. The fuel was at a premium of 26.5 cents June 14. Prompt delivery gained 5.08 cents to $2.555 a gallon.

Tesoro Corp.’s 60,000-barrel-a-day Mandan refinery in North Dakota is running at planned rates, Tina Barbee, a spokeswoman for the company, said in an e-mail. “We remain on schedule with previously announced completion targets for our expansion project,” she said.

Tesoro was scheduled to finish an expansion to increase the plant’s crude-processing capacity 10,000 barrels a day by “the latter part of this month,” Greg Goff, the company’s chief executive officer, said in a statement June 7.

Conventional, 87-octane gasoline in Chicago narrowed its discount 1.5 cents to 5.5 cents a gallon versus futures.

To contact the reporter on this story: Paul Burkhardt in New York at pburkhardt@bloomberg.net.

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

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.