Gasoline Declines as Scottish Refinery Reopening Adds Supply
Gasoline fell as the reopening of Scotland’s only refinery may increase supplies available for export to the U.S. from Europe.
Futures slipped 0.25 cent as European gasoline dropped when Ineos Group Holdings SA said it will immediately reopen the Grangemouth refinery and petrochemicals site after forging a deal with labor. Today’s retreat follows a 1.5 percent jump yesterday on concern supplies would decline after Citgo Petroleum Corp. shut the only crude unit at its Chicago-area refinery after a fire late Oct.23.
“The market is still well-supplied even with Citgo being down,” said Phil Flynn, senior market analyst at Price Futures Group in Chicago. “The Grangemouth settlement is giving us a little bit more of a downward pressure on products.”
Gasoline for November delivery settled at $2.5871 a gallon on the New York Mercantile Exchange. Futures declined 3.2 percent this week. Trading volume was 25 percent below the 100-day average at 3:04 p.m.
Eurobob gasoline in Europe’s Amsterdam-Rotterdam-Antwerp trading hub traded at $913 to $915 per metric ton today, down from $917 to $918 yesterday, according to a survey of traders and brokers monitoring Argus Media Group’s gasoline bulletin board.
U.S. retail gasoline prices are the lowest in nine months after declining seven straight days. Pump prices, averaged nationwide, slid 1.4 cents to $3.315 a gallon, Heathrow, Florida-based AAA said today on its website. Prices are 28.4 cents below a year ago. Missouri’s average dropped below $3 to $2.99, the first time any state has been below $3 since Feb. 7, according to Michael Green, a spokesman for AAA in Washington.
Ultra-low-sulfur diesel for November delivery rose 0.94 cent to $2.9097 a gallon. Trading volume was 6.8 percent below the 100-day average. Prices fell 4.1 percent this week.
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