Gasoline Futures Slip on Speculation Supplies Are Adequate
Gasoline declined for the first time in three days on speculation U.S. inventories are adequate to meet peak summer demand.
Futures slipped 0.3 percent after gaining 3.9 percent during the final two days of last week. East Coast stockpiles are the highest in more than a year, according to Energy Information Administration data. Gasoline was up earlier as oil climbed on concern that air strikes in Syria might increase tensions in the Middle East.
“It’s giving back a little bit of the rally,” said Andy Lipow, president of Lipow Oil Associates LLC in Houston. “Inventories are about 3 percent higher than this time last year. And the market assumes there won’t be any supply disruption due to the strikes in Syria.”
Gasoline for June delivery fell 0.72 cent to $2.8182 a gallon at 10:23 a.m. on the New York Mercantile Exchange, after touching $2.8445. Trading volume was 32 percent below the 100- day average.
PADD 1 gasoline supplies in the week ended April 26 rose 1.18 million barrels to 61.7 million, a 13-month high.
“Syria gave us a lift overnight,” said Carl Larry, president of Oil Outlooks & Opinions LLC in Houston. “It’s a holiday trade with London out and the market is moving sideways.”
Ultra-low-sulfur diesel for June delivery fell 0.43 cent to $2.8801 a gallon. Trading volume was 51 percent below the 100- day average.
Gasoline at the pump, averaged nationwide, rose 0.1 cent to $3.521 a gallon, AAA said today on its website. Prices have fallen 26.5 cents from the year-to-date high of $3.786 on Feb. 26 and are 26.2 cents below a year ago.
To contact the reporter on this story: Barbara Powell in Dallas at firstname.lastname@example.org
To contact the editor responsible for this story: Dan Stets at email@example.com