Gasoline Maintains Loss as East Coast Inventories Hold Steady
Gasoline maintained a decline as the Energy Information Administration reported supplies along the U.S. East Coast were little changed last week.
Futures sank as much as 1.7 percent. Inventories in PADD 1, where New York-traded futures contracts are delivered, slipped 36,000 barrels to 58.3 million as of Aug. 30. Stocks nationwide fell 1.83 million barrels to 216 million. Demand rose 0.7 percent while consumption over four weeks was 0.2 percent below a year earlier.
“There were no great changes in the demand,” said Andy Lipow, president of Lipow Oil Associates LLC in Houston. “Inventories are still 17 million barrels higher than this time last year.”
Gasoline for October delivery fell 3.1 cents, or 1.1 percent, to $2.8333 a gallon at 12:28 p.m. on the New York Mercantile Exchange, on trading volume that was 13 percent above the 100-day average for the time of day.
The October contract’s premium to November narrowed 0.95 cent to 1.26 cents, indicating supplies are ample to meet demand. The front-month contract has not been in contango, or valued less than later-month contracts, since April 30.
The motor fuel’s crack spread versus West Texas Intermediate crude narrowed $2.35 to $10.72 a barrel. The fuel’s premium over Brent fell $1.65 to $3.74. The spread touched $3.66, the smallest intraday level since January.
Pump prices, averaged nationwide, fell 0.2 cent to $3.587 a gallon, Heathrow, Florida-based AAA said today on its website. Retail gasoline is 23.7 cents below a year earlier.
Ultra-low-sulfur diesel for October delivery rose 1.24 cents, or 0.4 percent, to $3.1495 a gallon on trading volume that was 20 percent below the 100-day average.
ULSD’s crack spread versus WTI narrowed 52 cents to $24.01 a barrel while the premium over Brent increased 14 cents to $16.99 a barrel.
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