Gasoline Rises on U.S. Job Gains Amid Political Unrest in Egypt
Gasoline rose, heading for the first three-day rally since June 7, as the U.S. added more jobs in June than forecast and political unrest in Egypt boosted crude.
Futures advanced as the Labor Department reported nonfarm payrolls climbed by 195,000 workers for a second straight month. Crude oil increased to a 14-month high as Egypt’s Muslim Brotherhood called for nationwide protests against the military-appointed government two days after the ouster of Islamist Mohamed Mursi as president.
“The nonfarm payroll number is higher and that’s going to help demand,” said Carl Larry, president of Oil Outlooks & Opinions LLC in Houston. “You’re seeing support because of Egypt.”
August-delivery gasoline gained 1.44 cents, or 0.5 percent, to $2.8526 a gallon at 10:01 a.m. a gallon on the New York Mercantile Exchange. Trading volume was 27 percent below the 100-day average. West Texas Intermediate crude for August delivery rose 41 cents to $101.65 while August Brent added 79 cents to $106.33 on the London ICE Futures Exchange.
Revisions to the April and May payrolls reports added a total of 70,000 jobs to the employment count. The jobless rate held steady at 7.6 percent, while hourly earnings in the year ended in June advanced by the most since July 2011.
Egypt declared a state of emergency in the provinces of South Sinai and Suez, al Ahram newspaper reported.
“The market is focused on continued unrest in Egypt and the better-than-expected jobs report including upward revisions from previous months,” said Andy Lipow, president of Lipow Oil Associates LLC in Houston.
Pump prices, averaged nationwide, fell 0.1 cent to $3.476 a gallon, Heathrow, Florida-based AAA said today on its website. Retail costs have fallen to the lowest level since Jan. 31.
Ultra-low-sulfur diesel, or ULSD, for August delivery rose 2.22 cents, or 0.8 percent, to $2.9734 a gallon on volume that was 25 percent above the 100-day average.
ULSD’s crack spread versus West Texas Intermediate crude increased 41.6 cents to $23.127 a barrel.
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