Gasoline weakened on the Gulf Coast as refiners increased rates and inventories rose to the highest level since September 2011.
Gasoline inventories on the Gulf Coast, or PADD 3 region, rose 2.47 million barrels last week to 77.3 million, the highest level since September 2011, according to Energy Department data. PADD 3 refiners used 95.2 percent of capacity, higher than the national average of 90.6 percent.
Reformulated gasoline on the Gulf Coast fell 2 cents to 20.25 cents below futures traded on the New York Mercantile Exchange at 1:52 p.m., the lowest level since Oct. 30.
“This is tied to refinery utilization being up,” said Lewis Adam, president of ADMO Energy LLC, a supply consultant in Kansas City, Missouri. “They’re running them hard. And gasoline doesn’t have anyplace to go from the Gulf. It’s just not the season for gasoline.”
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