Ultra-low-sulfur diesel futures advanced for the first time in five days as some central banks indicated they planned to continue measures to promote economic growth that could spur fuel demand.
Diesel rose as much as 2.2 percent after Japanese Economy Minister Akira Amari told reporters in Tokyo today that Bank of Japan Governor Haruhiko Kuroda plans to pursue quantitative and qualitative easing to support the economy. Hungary’s central bank cut the main interest rate for a 10th month to a record low 4.5 percent. The Bank of Israel reduced borrowing costs for a second time this month to 1.25 percent, the lowest in more than three years.
“The big story is that central banks are continuing to keep low interest rates, and as a result we’re seeing rising commodity prices,” said Andy Lipow, president of Lipow Oil Associates LLC in Houston. “Central banks around the world are indicating they’re going to continue with a low-interest-rate policy designed to promote economic growth.”
ULSD for June delivery rose 5.67 cents to $2.9136 a gallon at 9:42 a.m. on the New York Mercantile Exchange. Trading volume was 12 percent below the 100-day average.
Gasoline for June delivery rose 3.12 cents, or 1.1 percent, to $2.8702 a gallon on the Nymex. Trading volume was 9.1 percent below the 100-day average.
Gasoline at the pump, averaged nationwide, fell by 0.5 cent to $3.626 a gallon, AAA said on its website today. Prices have dropped for six days in a row.
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