Futures advanced as gasoil jumped 1.1 percent on the ICE Futures Exchange in London. Higher prices can attract more imports from the U.S. Brent crude climbed 0.7 percent after the IEA said summer maintenance at North Sea fields could be lengthier and more extensive than usual. Crack spreads widened.
“The IEA said crude supplies short-term may tighten even though they lowered demand expectations,” said Phil Flynn, senior market analyst at Price Futures Group in Chicago. “That gave us some support.”
Ultra-low-sulfur diesel for July delivery rose 2.79 cents, or 1 percent, to $2.8854 a gallon at 10:02 a.m. on the New York Mercantile Exchange. Trading volume was 24 percent below the 100-day average for the time of day.
The Energy information Administration is scheduled to report last week’s inventories at 10:30 a.m. today in Washington. The report will probably show that distillate supplies climbed 1.5 million barrels and gasoline stockpiles gained 500,000 barrels, according to the median of 11 analyst estimates surveyed by Bloomberg.
“The market is expecting a build,” said Andy Lipow, president of Lipow Oil Associates LLC in Houston.
Gasoline for July delivery rose 0.56 cent to $2.8287 a gallon on trading volume that was 37 percent below the 100-day average.
Gasoline at the pump, averaged nationwide, rose 0.1 cent to $3.634 a gallon, Heathrow, Florida-based AAA, the nation’s largest motoring organization, said today on its website. Prices are 9.2 cents above a year earlier.
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