Gasoline fell after a winter snowstorm blanketed the Northeast, reducing driving demand, and as Brent crude slipped.
Futures slid as much as 1.7 percent after more than 2 feet of snow fell in parts of the Northeast, shutting roads. Brent crude sank 0.7 percent in London as the Brent-WTI spread tightened for the first time in nine days, shrinking 92 cents to $22.26 a barrel. Gasoline’s crack spread versus Brent narrowed 17 cents to $9.40 a barrel.
“In the run-up to last week, everybody was worried about supplies in New York Harbor, but we got a little bit of a break because nobody could get out of their house,” said Phil Flynn, senior market analyst at Price Futures Group in Chicago. “Before the storm everybody filled their gas tank, and now nobody can find their cars.”
Gasoline for March delivery fell 2.26 cents, or 0.7 percent, to $3.0362 a gallon on the New York Mercantile Exchange. Volume was 5.9 percent above the 100-day average at 11:04 a.m. in New York.
Heating oil for March delivery declined 0.8 cent to $3.2304 a gallon on volume that’s 21 percent below average.
Gasoline at the pump, averaged nationwide, rose 0.5 cent to $3.587 a gallon, AAA said on its website today. Prices are the highest since Oct. 24, and 8.1 cents above a year ago.
To contact the reporter on this story: Eliot Caroom in New York at firstname.lastname@example.org
To contact the editor responsible for this story: Dan Stets at email@example.com