Gasoline futures declined to a three-month low amid increasing inventories in the U.S. East Coast. Crack spreads narrowed.
Futures dropped 0.4 percent. The Energy Information Administration reported yesterday that PADD 1 gasoline supplies rose 674,000 barrels last week to 60 million, a six-week high. The May crack spread versus West Texas Intermediate narrowed 15 cents to $27.79 a barrel, and the premium over Brent shrank 39 cents to $16.18.
“The market looks to be searching for a floor and the fact that there is quite a bit of gasoline supplies in New York Harbor is keeping prices weaker,” said Amrita Sen, chief oil market strategist at Energy Aspects Ltd., a London research company.
Gasoline for May delivery sank 1.1 cents to $2.718 a gallon at 10:23 a.m. on the New York Mercantile Exchange. Trading volume was 18 percent above the 100-day average for the time of day.
Ultra-low-sulfur diesel for May delivery advanced 1.26 cents, or 0.5 percent, to $2.7472 a gallon at 10:23 a.m., after settling yesterday at the lowest level since July 10. Trading volume was 26 percent above the 100-day average.
Inventories of distillates, including heating oil and diesel, increased 2.36 million barrels to 115.2 million. Analysts in the survey estimated a decline of 350,000 barrels.
Gasoline at the pump, averaged nationwide, fell 0.7 cent to $3.512 a gallon, AAA said today on its website. Prices have fallen 27.4 cents from this year’s high of $3.786 on Feb. 26 and are 38.7 cents below a year ago.
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