Gasoline Futures Drop as Tropical Storm Dissipates in Atlantic
Gasoline fell as Tropical Storm Dorian degenerated into a tropical wave, easing concern that it would affect U.S. refining and fuel distribution. Crack spreads narrowed.
Futures slipped as much as 1.2 percent. Dorian was downgraded by the National Hurricane Center on July 27. Futures rose 0.9 percent on July 26 and crack spreads widened on the chance that Dorian might strengthen and approach the U.S. Gulf, where 45 percent of U.S. refining capacity is located, or the East coast, including New York Harbor, the delivery point for New York Mercantile Exchange gasoline and diesel contracts.
“Gasoline should have opened down today because Tropical Storm Dorian dissipated over the weekend,” said Andy Lipow, president of Lipow Oil Associates LLC in Houston. Lipow
August-delivery gasoline fell 3.32 cents, or 1.1 percent, to $3.0112 a gallon at 10:06 a.m. on the New York Mercantile Exchange. Trading volume was 18 percent below the 100-day average. Futures slipped 2.5 percent last week, the first weekly loss in a month.
Pump prices, averaged nationwide, fell a seventh consecutive day, dropping 0.3 cent to $3.631 a gallon, Heathrow, Florida-based AAA said today on its website. That’s the lowest level since July 14. Prices are 14.6 cents higher than a year earlier.
Ultra-low-sulfur diesel for August delivery fell 0.73 cent to $3.0028 a gallon on trading volume that was 18 percent below the 100-day average. ULSD declined 2.6 percent last week, the first loss in five weeks.
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