Gasoline slipped on speculation demand will drop as the summer driving season ends after the Sept. 2 U.S. Labor Day holiday and as the school year begins.
Futures slid after gaining 1.3 percent last week amid a series of unplanned refinery outages from Canada to Texas. Gasoline also declined on concern that the Federal Reserve will start tapering monetary stimulus in September.
“We’re going into the shoulder season and there’s the possibility of tapering in September,” said Phil Flynn, senior market analyst at Price Futures Group in Chicago. “The expectations of a shortage of supply are diminishing.”
Gasoline for September delivery fell 2.56 cents, or 0.9 percent, to $2.9816 a gallon at 9:50 a.m. on the New York Mercantile Exchange on trading volume that was 36 percent below the 100-day average.
Gasoline, after jumping 11 percent in July, has declined 2.1 percent this month.
Pump prices, averaged nationwide, was unchanged a second day at $3.541 a gallon, Heathrow, Florida-based AAA said today on its website. Prices are 20.7 cents below a year earlier.
Ultra-low-sulfur diesel for September delivery fell 0.64 cent to $3.0886 a gallon on trading volume that was 43 percent below the 100-day average. Prices are up 1.5 percent this month.
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