Gasoline Rises on Speculation Jobs Report Limits Fed Tapering
Gasoline rose for the first time in six days on speculation that the Federal Reserve will limit or delay cutbacks to stimulus efforts after August payrolls rose less than projected.
Futures advanced as the Labor Department reported that U.S. employers added 169,000 jobs last month and the unemployment rate fell as more people left the workforce. The Fed, which meets Sept. 17-18, has said it will consider the health of the jobs market in timing a tapering of its $85 billion in monthly bond purchases.
“The market’s interpretation of the jobs report is that the Fed tapering will be at a slower rate than had been previously anticipated,” said Andy Lipow, president of Lipow Oil Associates LLC in Houston.
Gasoline for October delivery gained 1.99 cents, or 0.7 percent, to $2.8559 a gallon at 9:41 a.m. on the New York Mercantile Exchange. Trading volume was 18 percent below the 100-day average. Prices have fallen 5.4 percent this week.
The gain of 169,000 workers in August followed a revised 104,000 increase in July that was less than initially estimated. The jobless rate fell to 7.3 percent from 7.4 percent.
Pump prices, averaged nationwide, fell 0.3 cent to $3.584 a gallon, Heathrow, Florida-based AAA said today on its website. Retail gasoline is 23.9 cents below a year earlier.
Ultra-low-sulfur diesel for October delivery rose 1.53 cents, or 0.5 percent, to $3.155 a gallon on trading volume that was 46 percent below the 100-day average. Prices are up 0.5 percent this week.
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