Gasoline Futures Drop in New York on U.S. Supply IncreaseBarbara Powell
Gasoline futures slipped after U.S. inventories of the motor fuel rose a second straight week.
Prices fell 0.5 percent after climbing the most in four weeks yesterday. Gasoline supplies increased 1.61 million barrels to 213.2 million, the largest build since the week ended Jan. 17, according to Energy Information Administration data. Production jumped 4.3 percent.
“It’s a little buyers’ remorse going on after the run-up,” said Phil Flynn, senior market analyst at Price Futures Group in Chicago. “The expectation is that supplies are going to continue to rise and see record gasoline production in the coming weeks.”
June-delivery gasoline dropped 1.32 cents to settle at $2.905 a gallon on the New York Mercantile Exchange. Volume was 38 percent above the 100-day average as of 3:04 p.m.
“It’s giving back its gains from yesterday on the back of increased supply and production,” said Andy Lipow, president of Lipow Oil Associates LLC in Houston.
Gasoline’s crack spread versus WTI crude narrowed 4 cents to $21.75 a barrel. The motor fuel’s premium to Brent crude slipped 46 cents to $13.97.
The average U.S. pump price fell 0.1 cent to $3.665 a gallon, according to data from Heathrow, Florida-based AAA today. Prices are 12.6 cents higher than a year ago.
Ultra low sulfur diesel for June delivery sank 0.73 cent, or 0.3 percent, to $2.9202 a gallon on volume that was 15 percent below the 100-day average.
Diesel’s crack spread versus WTI crude widened 20 cents to $22.39 a barrel. The motor fuel’s premium to Brent crude declined 22 cents to $14.61.