Oct. 10 (Bloomberg) -- Gasoline gained after the leaders of France and Germany pledged a plan to end the debt crisis, strengthening the euro against the dollar and raising the appeal of commodities as an investment.
Futures rose as the U.S. currency fell as much as 2.4 percent. German Chancellor Angela Merkel and French President Nicolas Sarkozy said yesterday they will deliver a plan by the Nov. 3 Group of 20 summit to recapitalize European banks and address the Greek debt crisis.
Oil and products rose on “the dollar and the hopes that Sarkozy and Merkel are going to come up with an agreement,” said Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut. “The plan seems to be the primary cause,” he said.
Gasoline for November delivery gained 4.77 cents, or 1.8 percent, to settle at $2.6953 a gallon on the New York Mercantile Exchange.
The dollar weakened 2 percent versus the European currency at 2:41 p.m. in New York
Heating oil for November delivery rose 4.51 cents, or 1.6 percent, to $2.9039 a gallon on the exchange.
“Heating oil seems to be higher because of ongoing worries with the shut refineries,” McGillian said. “Otherwise demand could be tepid.”
ConocoPhillips’s Trainer, Pennsylvania, refinery stopped processing crude oil Sept. 30. Sunoco Inc. may shut the main process units in July at its Philadelphia and Marcus Hook refineries if it doesn’t find a buyer for the two plants, the company said Sept. 6.
U.S. inventories of gasoline are expected to hold at previous levels, acccording to analysts surveyed by Bloomberg.
Gasoline inventories probably fell 500,000 barrels to 213.2 million, according to a median estimate of 9 analysts. Distillate stocks for the same period slipped 1 million barrels barrels to 155.9 million, the analysts said.
Regular gasoline at the pump, averaged nationwide, fell 0.1 cent to $3.395 yesterday, according to AAA data.
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