Oct. 14 (Bloomberg) -- Ethanol gained for the fourth time in five days as gasoline futures rose the most in a week.
The biofuel increased 2.3 percent and gasoline advanced 2.4 percent after the U.S. Energy Department reported yesterday that stockpiles of the motor fuel fell by 4.13 million barrels in the week ended Oct. 7. The 1.9 percent decline was the most since April 8.
“There is a hangover from that” report, Phil Flynn, vice president of research at PFGBest in Chicago, said in a telephone interview. “That kind of set the mood for the week.”
Denatured ethanol for November delivery gained 6.1 cents to settle at $2.701 a gallon on the Chicago Board of Trade.
Gasoline for November delivery increased 6.72 cents to settle at $2.8247 a gallon in New York. The contract covers reformulated gasoline, which is made to be blended with ethanol before delivery to filling stations.
In cash market trading, ethanol in New York rose 7 cents, or 2.5 percent, to $2.895 a gallon, and on the West Coast the biofuel gained 5.5 cents, or 1.9 percent, to $2.895, according to data compiled by Bloomberg.
Ethanol in the U.S. Gulf jumped 20 cents, or 7.6 percent, to $2.825 a gallon, and in Chicago the additive gained 11 cents, or 4.1 percent, to $2.775, Bloomberg data show.
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