Gasoline and diesel futures advanced in New York, narrowing weekly declines, as Brent crude oil rallied.
Both fuels climbed as much as 0.7 percent as Brent jumped as much as 0.8 percent. A higher Brent price increases the processing costs for some East Coast and Gulf Coast refiners that rely on imported oil. Volume was below-average for the time of day.
Gasoline for October delivery rose 0.93 cent, or 0.3 percent, to $2.7065 a gallon at 10:01 a.m. on the New York Mercantile Exchange on volume that was 33 percent below the 100-day average.
Futures sank 1.6 percent yesterday on concern that the Federal Reserve’s Sept. 18 decision to leave intact its level of bond buying indicates the U.S. economy is still struggling and demand is weak. Gasoline and diesel were also under pressure as crude prices retreated after Libyan production increased.
Brent for November settlement traded at a $3.75 premium to WTI, up from $2.90 yesterday.
“We’re seeing some profit taking in the Brent-WTI spread,” McGillian said.
Pump prices, averaged nationwide, fell 0.3 cent to $3.491 a gallon, 35.5 cents below a year ago, Heathrow, Florida-based AAA said today on its website. Prices have fallen 18 consecutive days to the lowest level since July 8.
Ultra-low-sulfur diesel for October delivery advanced 1.48 cents, or 0.5 percent, to $3.0189 a gallon on trading volume that was 11 percent below the 100-day average.
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