Gasoline Falls on Speculation Tornado Didn’t Affect Inventories
Gasoline fell on speculation that the deadly tornado near Oklahoma City may not have affected refinery operations in the area.
Futures declined as Oklahoma Gas & Electric said it isn’t aware of any storm-related refinery failures. Phillips 66 (PSX) said there was no impact at its Ponca City plant and Valero Energy Corp. (VLO) said the Ardmore refinery was unaffected. Total U.S. gasoline supplies in the week ended May 10 were seasonally the highest in three years, according to Energy Information Administration data. Prices at the pump have jumped 13.4 cents since May 4, ahead of the May 27 U.S. Memorial Day holiday.
“We haven’t seen any refineries that have lost power and fundamentals aren’t supportive of any gains,” said Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut. “We don’t really have strong demand and gasoline prices have jumped.”
Gasoline for June delivery fell 3.13 cents, or 1.1 percent, to $2.8743 a gallon at 9:50 a.m. on the New York Mercantile Exchange. Trading volume was 28 percent above the 100-day average for the time of day.
Gasoline at the pump, averaged nationwide, rose 0.1 cent to $3.654 a gallon, AAA said today on its website. Prices have climbed since May 4 to the highest level since March 25 and are 3.5 cents below a year earlier.
The U.S. Memorial Day holiday is traditionally the beginning of the peak summer driving season.
ULSD for June delivery fell 0.35 cent to $2.9473 a gallon on the Nymex on trading volume that was 33 percent below the 100-day average.
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