Gasoline Sinks on Speculation Tropical Storm Won’t Shut Plants
Gasoline slipped on speculation Tropical Storm Karen won’t reduce production from Gulf Coast refineries at a time when inventories are ample.
Futures slipped as much as 0.5 percent. Forecasters no longer expect Tropical Storm Karen to become a hurricane before it hits the Gulf Coast near the Alabama-Florida line, which is east of the cluster of plants around New Orleans. Nationwide gasoline inventories as of Sept. 27 were 7.4 percent above the five-year seasonal average, Energy Information Administration data show.
“It doesn’t seem that this storm is really going to affect refinery operations to any significant degree,” Andy Lipow, president of Lipow Oil Associates LP in Houston, said by phone. “Given that inventories are 12 percent higher than this time last year, the market is not really worried about supply.”
Gasoline for November delivery fell 0.66 cent, or 0.3 percent, to $2.633 a gallon at 10:08 a.m. on the New York Mercantile Exchange. Trading volume was 50 percent below the 100-day average.
The system, which has top sustained winds of 60 miles (97 kilometers) per hour, is 275 miles south-southwest of the mouth of the Mississippi River and moving north-northwest at 10 mph.
Inventories of the motor fuel rose 3.5 million barrels to 219.7 million in the week ended Sept. 27. Supplies in PADD 1, which includes New York Harbor, the delivery point for the Nymex contract, increased 1.56 million barrels to 56 million.
Pump prices, averaged nationwide, fell 1 cent to $3.366 a gallon, the lowest level since Jan. 28 and 41.8 cents below a year ago, Heathrow, Florida-based AAA said today on its website.
Ultra-low-sulfur diesel for November delivery slipped 0.22 cent to $3.0011 a gallon on trading volume that was 30 percent below the 100-day average.
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