Gasoline futures reached the highest price in a month after an industry group reported that U.S. inventories of the motor fuel declined.
Prices rose as much as 0.4 percent. The American Petroleum Institute said yesterday that gasoline supplies fell 3.65 million barrels last week. The Energy Information Administration will probably report today that stockpiles shrank by 1 million barrels in the seven days ended April 4, according to the median estimate of 10 analysts surveyed by Bloomberg.
“De-stocking of winter-grade gasoline continues through the month of April,” said Andy Lipow, president of Lipow Oil Associates LLC in Houston. “It may not necessarily be an indication of gasoline demand. The market is going to wait for the EIA stats.”
May-delivery gasoline rose 0.59 cent to $2.986 a gallon at 9:37 a.m. on the New York Mercantile Exchange. Prices touched $2.9927, the highest intraday level since March 4. Volume was 35 percent above the 100-day average.
The EIA is scheduled to report last week’s inventories at 10:30 a.m. in Washington.
The average U.S. pump price rose 1.5 cents to $3.601, the highest since Aug. 5, according to data from Heathrow, Florida-based AAA.
Ultra low sulfur diesel for May delivery gained 0.79 cent, or 0.3 percent, to $2.9423 a gallon on volume that was 46 percent below the 100-day average.
The API reported that stockpiles of distillates, including diesel and jet fuel, rose 293,000 barrels last week. The survey projected that distillates fell 250,000 barrels.
To contact the reporter on this story: Barbara Powell in Houston at email@example.com