Gasoline weakened against New York futures on the Gulf Coast after the region’s fuel supply grew the most in almost a year.
Gulf gasoline inventories gained 2 million barrels to 6.94 million in the week ended Oct. 5, the largest increase since Oct. 28, Energy Department data showed. Supplies nationwide dropped by 534,000 barrels to 195 million.
“The gasoline numbers are strong and go to show that if anyone is producing or refining products right now, it’s the Gulf Coast,” Carl Larry, president of Oil Outlooks & Opinions LLC, said by phone from New York today. “The prices will continue to go down and could put pressure on gasoline prices at the pump across the country. Maybe a few cents, not much.”
The premium for reformulated, 87-octane gasoline slipped by 3 cents to 3 cents a gallon over futures traded on the New York Mercantile Exchange at 11:54 a.m., according to data compiled by Bloomberg. Prompt delivery trimmed 3.79 cents to $2.9814.
Regular gasoline at the pump averaged $3.813 a gallon in the U.S., compared with $3.784 a week ago and $3.396 a year ago, according to website data from AAA, the nation’s largest motoring organization.
Supplies of distillate products including heating oil and diesel fuel gained 240,000 barrels to 37.6 million barrels on the Gulf Coast, the Department of Energy reported today. Nationwide, stocks declined by 3.2 million barrels to 121 million, with the East Coast leading the drop.
“The overall high inventories on the Gulf are good but with the distillate levels so low, it’s not going to help ease tight fuel supplies,” Larry said. “Those pipelines from the Gulf to the East are going to be full of distillates instead of gasoline.”
The premium for ultra-low sulfur diesel in the New York Harbor slipped 0.12 cent to 11.38 cents over heating oil futures at 12:08 p.m. The gap for reformulated, 87-octane gasoline was unchanged at 20.25 cents a barrel versus New York futures.
Gasoline inventories fell 1.03 million barrels to 45.1 million on the East Coast, the lowest level since 2008 and the region’s fourth consecutive loss.
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