Gasoline Follows WTI Crude Higher After Inventory Decline
Gasoline rose, following West Texas Intermediate crude higher, after an industry report yesterday that oil inventories at the storage hub of Cushing, Oklahoma, declined last week.
Futures gained as much as 0.6 percent. WTI rose 0.8 percent and its discount to Brent crude on ICE Futures Europe narrowed to $8.29 a barrel, the lowest level since January 2012. Gasoline’s crack spread versus WTI narrowed 11 cents to $23.27 a barrel, and the fuel’s premium over Brent widened 40 cents to $14.
Gasoline for June delivery rose 1.28 cents, or 0.5 percent, to $2.8462 a gallon on the New York Mercantile Exchange on trading volume that was 24 percent below the 100-day average at 10:17 a.m.
The Energy Information Administration is scheduled to report weekly inventories at 10:30 a.m. today in Washington. The EIA will probably report that distillate inventories rose 500,000 barrels and gasoline supplies declined 475,000 barrels, according to the median estimate of 12 analysts in a survey by Bloomberg.
The American Petroleum Institute reported yesterday that gasoline stockpiles fell 186,000 barrels and distillate stockpiles increased 1.1 million.
Ultra-low-sulfur diesel for June delivery rose 0.21 cent to $2.9298 a gallon on Nymex on trading volume that was 0.5 percent below the 100-day average for the time of day.
ULSD’s crack spread versus West Texas Intermediate crude shrank 60 cents to $26.74 a barrel. The premium over Brent dropped 11 cents to $18.45.
Gasoline at the pump, averaged nationwide, rose 1.4 cents to $3.539 a gallon, AAA said today on its website. Prices are 22.4 cents below a year ago.
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