Gasoline futures followed crude lower after the Bank of England left its stimulus program unchanged, dimming the outlook for demand. Crack spreads widened.
Futures fell as much as 1 percent. The nine-member Monetary Policy Committee kept the target for asset purchases at 375 billion pounds ($582 billion). While some surveys for April suggest the recovery is building momentum, strains in the euro area that prompted a European Central Bank interest-rate cut last week might support the case for further stimulus.
“After we saw the ECB move to cut rates, people were thinking that the U.K. was going to do something to give us some kind of jump-start,” said Carl Larry, president of Oil Outlooks & Opinions LLC in Houston. “When there wasn’t anything there, it let a little steam out of the market.”
Gasoline for June delivery fell 0.74 cent, or 0.3 percent, to $2.8464 a gallon at 10:05 a.m. on the New York Mercantile Exchange on volume that was 37 percent below the 100-day average.
Gasoline at the pump, averaged nationwide, rose 1 cent to $3.549 a gallon, AAA said on its website today.
Ultra-low-sulfur diesel for June delivery gained 0.63 cent to $2.921 a gallon on the Nymex. Trading volume was 3 percent below the 100-day average.
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