Heating oil fell as Brent prices declined after flows increased on a North Sea pipeline that had been shut for five days.
Futures sank as much as 1 percent. Brent dropped $1.17 to $109.98 a barrel on ICE Futures Europe Exchange in London. since Dec. 26. The Brent Pipeline System is “approaching” its targeted flow rate of 80,000 barrels a day, an official for Abu Dhabi National Energy Co., or Taqa, said by phone today. The system had an unplanned halt on March 2. Heating oil’s premium to Brent grew a fourth day, gaining 48 cents to $14.47 a barrel.
“Brent production has returned, Brent prices have fallen, dragging heating oil prices with it as the U.S. exports significant amounts of diesel fuel back to Europe,” said Andy Lipow, president of Lipow Oil Associates LLC in Houston.
Heating oil for April delivery declined 1.65 cents to $2.963 a gallon on the New York Mercantile Exchange. Volume was 15 percent above the 100-day average at 9:36 a.m.
April-delivery gasoline advanced 2.98 cents to $3.1531 a gallon on the New York Mercantile Exchange. Volume was 61 percent above the 100-day average for the time of day.
Gasoline at the pump, averaged nationwide, fell 0.7 cent to $3.712 a gallon, AAA said today on its website. It was the ninth consecutive drop.
To contact the reporter on this story: Eliot Caroom in New York at email@example.com
To contact the editor responsible for this story: Dan Stets at firstname.lastname@example.org