Gulf Gasoline Weakens as Demand Declines to 11-Month Low

U.S. Gulf Coast gasoline sank to a two-week low as demand for motor fuel slumped to the least in 11 months in the U.S. and stockpiles on the Gulf increased.

Nationwide, gasoline use slipped by almost 6 percent to 8.01 million barrels a day in the week ended Jan. 4, the lowest level since Feb. 3, according data from the U.S. Energy Information Administration. Inventories of gasoline on the Gulf advanced 1.15 million barrels to 81.4 million.

The discount for reformulated gasoline to be blended with ethanol, or RBOB, widened 4.75 cents to 15.25 cents a gallon versus futures on the New York Mercantile Exchange at 3:53 p.m., the widest gap since Dec. 27. Conventional gasoline also slid 1 cent to trade at a 14 cents under futures.

Ultra-low-sulfur diesel on the Gulf gained 0.63 cent to a 0.13 cent premium versus heating oil futures. The same fuel rose 1.63 cents to 5.63 cents over futures in New York Harbor.

Distillate stockpiles retreated by 125,000 barrels to 23.7 million last week in the Central Atlantic region, known as PADD 1B, which includes New York and New Jersey.

To contact the reporters on this story: Christine Harvey in New York at charvey32@bloomberg.net; Eliot Caroom in New York at ecaroom@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.