Gasoline Slides as Supplies Rise Even as Refiners Shut Units
Gasoline fell as supplies are rising even as refiners have shut units for unplanned work and fuel production is down.
Futures slipped as the Energy Information Administration reported yesterday that gasoline supplies rose 3.06 million barrels last week to 224.1 million. Demand sank 6.1 percent from a week earlier. Gasoline output fell 5.6 percent to 9.05 million barrels a day, the lowest rate in seven weeks, as refiners shut process units.
“The build was quite surprising given the problems we’ve seen and it’s pressuring gasoline prices,” said Andy Lipow, president of Lipow Oil Associates LLC in Houston.
August-delivery gasoline fell 1.73 cents, or 0.6 percent, to $3.0928 a gallon at 9:36 a.m. on the New York Mercantile Exchange. Trading volume was 22 percent above the 100-day average.
Supplies on the Gulf Coast, home to 45 percent of U.S. refining capacity, rose 2.06 million barrels to 78.2 million, the highest level in five months, according to EIA data. Bill Day, a spokesman for Valero Energy Corp. (VLO) in San Antonio said today that the fluid catalytic cracker remains shut for repairs at its Port Arthur, Texas, refinery.
Pump prices, averaged nationwide, rose a 10th consecutive time, gaining 1.2 cents to $3.669 a gallon, Heathrow, Florida-based AAA said today on its website. That’s the highest level since March 23.
Ultra-low-sulfur diesel for August delivery rose 2.2 cents, or 0.7 percent, to $3.0932 a gallon on trading volume that was 12 percent above the 100-day average.
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