Gasoline fell after the industry-funded American Petroleum Institute reported that U.S. inventories rose last week.
Futures slid 1.8 percent after the API projected yesterday that stockpiles of the motor fuel gained by 3.03 million barrels. A Bloomberg survey predicted that the Energy Information Administration will say today that supplies fell 300,000 barrels. Crack spreads narrowed.
“The significant build in gasoline inventories reported by the API has been weighing on the futures market,” said Andy Lipow, president of Lipow Oil Associates LLC in Houston. “Should the EIA show a similar increase, gasoline inventories will be 10 percent higher than this time last year, more than adequate for the summertime gasoline season.”
Gasoline for June delivery dropped 4.02 cents, or 1.4 percent, to $2.8056 a gallon at 9:55 a.m. on on the New York Mercantile Exchange. Prices have fallen three straight days, retreating 3.5 percent. Trading volume was 55 percent above the 100-day average for the time of day.
Gasoline at the pump, averaged nationwide, rose 0.2 percent to $3.66 a gallon, Heathrow, Florida-based AAA, the nation’s largest motoring organization, said today on its website. Prices have climbed since May 4 to the highest level since March 24 and are 2 cents below a year earlier.
The U.S. Memorial Day holiday, which falls on May 27 this year, is traditionally the beginning of the peak summer U.S. driving season.
Ultra-low-sulfur diesel for June delivery fell 3.84 cents, or 1.3 percent, to $2.8906 a gallon on the Nymex on trading volume that was 55 percent above the 100-day average.
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