Oct. 26 (Bloomberg) -- Gasoline fell as European leaders prepare to meet for a debt crisis summit in Brussels and after a report that U.S. inventories rose last week.
Futures declined as European leaders meet to try to contain a debt crisis that threatens the region’s economy and global recovery. European Union talks with banks on bondholder losses have been suspended, an EU official said today. The industry- funded American Petroleum Institute reported yesterday that U.S. gasoline supplies rose 153,000 barrels.
“It’s all Europe,” said Peter Beutel, president of trading advisory company Cameron Hanover Inc. in New Canaan, Connecticut. “We are on tenterhooks waiting to see which shoe will drop. The DOE inventory report will have to have a really big move to catch traders’ attention.”
Gasoline for November delivery fell 3.83 cents, or 1.4 percent, to $2.6615 a gallon at 10:01 a.m. on the New York Mercantile Exchange.
The EU wants voluntary participation by banks in a second bailout package for Greece, though a forced solution can’t be ruled out, the official said in Brussels today on condition of anonymity because the talks are private.
At today’s summit in Brussels, EU leaders will try to determine the outlines of what must be achieved to prevent Greece defaulting and return it to a sustainable debt load, the official said.
November-delivery heating oil slipped 1.46 cents, or 0.5 percent, to $3.0356 a gallon on the exchange.
The Energy Department is scheduled to report last week’s inventories at 10:30 a.m. today in Washington.
U.S. gasoline stockpiles probably fell 1.75 million barrels last week, according to the median estimate of 12 analysts in a survey by Bloomberg News. Stockpiles of heating oil and diesel decreased 2 million barrels.
Regular gasoline at the pump, averaged nationwide, fell 0.5 cent to $3.441 a gallon yesterday, according to AAA data.
--With assistance from James G. Neuger and Patrick Henry in Brussels. Editors: David Marino, Richard Stubbe
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