Diesel Futures Advance as Brent Surges Amid Supply Disruptions
Diesel rose as Brent gained 0.5 percent and gasoil climbed 0.6 percent on the London ICE Futures exchange. Egypt’s army-backed government declared a state of emergency in the country. Libya’s Waha Oil Co. halted almost all of its 340,000-barrel-a-day output as tanks reached full capacity amid port closures.
“The European market is getting supported by the unrest we’re seeing in Egypt and on the back of supply disruptions in Libya, Iraq and the Sudan,” said Andy Lipow, president of Lipow Oil Associates LLC in Houston.
Ultra-low-sulfur diesel for September delivery rose 1.97 cents, or 0.7 percent, to $3.0675 a gallon at 10:39 a.m. on the New York Mercantile Exchange on trading volume that was 15 percent below the 100-day average.
Members of Egypt’s Muslim Brotherhood torched government headquarters in Giza and called for rallies nationwide as the death toll from a crackdown on the supporters of ousted President Mohamed Mursi rose above 500.
Gasoline for September delivery fell 0.41 cent to $2.9789 a gallon on trading volume that was 6.5 percent below the 100-day average.
Pump prices, averaged nationwide, were unchanged at $3.539 a gallon, Heathrow, Florida-based AAA said today on its website. Prices are the lowest since July 10. The average is 17 cents below a year earlier.
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