Gasoline, Diesel Advance as Brent Rallies on Libya Disruptions

Gasoline and ultra-low sulfur diesel rose, following Brent crude higher as protests in Libya disrupted oil exports.

Futures gained as Brent advanced as much as 1.4 percent. Protesters stopped a tanker from docking at the port of Hariga, said Mohamed Elharari, a spokesman for state-run National Oil Corp. The Zawiya refinery reopened after being shut by protests yesterday, he said. The country’s output in October was down 69 percent from a year earlier, according to a Bloomberg survey.

“Products are being drawn up by Brent and Brent is reacting to supply disruptions out of Libya,” said Andy Lipow, president of Lipow Oil Associates LLC in Houston.

Gasoline for December delivery rose 4.1 cents, or 1.6 percent, to $2.6274 a gallon at 10:08 a.m. on the New York Mercantile Exchange. Trading volume was 12 percent below the 100-day average.

Brent for December settlement, which expires tomorrow, gained $1.20 to $107.01 a barrel on the London-based ICE Futures Europe exchange. The more-active January contract added $1.15 to $106.69. December Brent traded at a $13.30 premium to West Texas Intermediate crude on Nymex, up from $12.77 yesterday.

“The Brent crude is definitely leading the way once again and it’s keeping the products moving as well,” said Phil Flynn, senior market analyst at Price Futures Group in Chicago.

Gasoline Inventories

Supplies of gasoline, already the lowest in almost a year, probably declined 900,000 barrels last week, according to the median estimate of 11 analysts in a survey by Bloomberg. The Energy Information Administration is scheduled to report inventories for the week ended Nov. 8 tomorrow at 11 a.m. in Washington, a day later than usual because of the Veterans Day holiday Nov. 11.

Gasoline’s crack spread versus WTI widened $1.08 to $16.67 a barrel. The fuel’s premium to Brent rose 58 cents to $3.40.

U.S. pump prices, averaged nationwide, rose 0.7 cent to $3.186 a gallon, Heathrow, Florida-based AAA said today on its website. Prices are 25.4 cents below a year ago.

Distillate inventories, including heating oil and diesel, fell 1 million barrels, according to the survey.

Ultra-low-sulfur diesel for December delivery advanced 3.68 cents, or 1.3 percent, to $2.89 a gallon on trading volume that was 5.8 percent below the 100-day average.

ULSD’s premium over WTI widened 87 cents to $27.66 a barrel. The fuel’s crack spread versus Brent increased 37 cents to $14.39.

To contact the reporter on this story: Barbara Powell in Houston at bpowell4@bloomberg.net

To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net

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