Gasoline fell as equities declined and on speculation that demand will drop after the U.S. Memorial Day Holiday.
Futures headed for the biggest weekly decline since April 5 as the summer driving season began today with the start of the four-day holiday weekend. Demand rose 5.4 percent last week, and averaged over four weeks is down 3.3 percent from the year before, according to Energy Information Administration data. The S&P 500 slid 0.6 percent to 1,640.58 at 9:57 a.m. in New York.
“We’re at Memorial Day, seasonally near the peak for demand, and after that demand will probably moderate,” said Phil Flynn, senior market analyst at Price Futures Group in Chicago. “The stock market is down a little and people are lightening up their position going into the holiday.”
Gasoline for June delivery fell 2.17 cents, or 0.8 percent, to $2.8064 a gallon at 9:34 a.m. on the New York Mercantile Exchange on trading volume that was 36 percent below the 100-day average for the time of day. Futures have fallen 3.5 percent this week.
Gasoline at the pump, averaged nationwide, fell 0.8 cent to $3.651 a gallon, Heathrow, Florida-based AAA, the nation’s largest motoring organization, said today on its website. Prices are 2.5 cents below a year earlier.
Ultra-low-sulfur diesel for June delivery dropped 1.77 cents, or 0.6 percent, to $2.8423 a gallon on the Nymex on trading volume that was 37 percent below the 100-day average for the time of day. Futures have declined 3.2 percent this week, the largest loss since the seven days ended March 1.
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