Bloomberg News

Gulf Gasoline Falls for Second Day as Low-Demand Season Nears

December 20, 2011

Dec. 20 (Bloomberg) -- Gulf Coast gasoline fell for a second day against futures as traders prepared for less demand after the holidays, when driving usually tapers off.

“We’re starting to enter the lower demand season,” Andy Lipow, president of Lipow Oil Associates in Houston, said in a telephone interview. “Gasoline demand during January and February is seasonally the lowest of the year, and you’re also starting to see impacts from some of the weather.”

There were heavy snowfalls in eastern Colorado and western Kansas yesterday and a blizzard warning was posted today for the northern Texas panhandle, the National Weather Service said.

Conventional, 87-octane gasoline’s discount on the Gulf Coast widened 1.13 cents to 6.13 cents a gallon versus futures on the New York Mercantile Exchange at 12:28 p.m., according to data compiled by Bloomberg. Prompt delivery rose 6.91 cents to $2.5082 a gallon.

The premium for ultra-low-sulfur diesel in New York Harbor widened 0.25 cent to 4 cents a gallon versus heating oil futures traded on the New York Mercantile Exchange.

--Editors: Charlotte Porter, David Marino

To contact the reporter on this story: Colin McClelland in Toronto at cmcclelland1@bloomberg.net

To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net.


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