Gasoline futures fluctuated, narrowing the discount to ultra-low-sulfur diesel.
Futures swung between gains and losses. A survey by Bloomberg projected supplies fell last week. Gasoline’s discount to ULSD narrowed 1.24 cents to 3.2 cents a gallon. A government report tomorrow will probably show supplies of the motor fuel declined for the ninth consecutive week.
“Some of the air in the gasoline market was taken out and, going forward, we’re going to be keying on the fundamentals,” said Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut. “Now the questions are, will we see a tighter supply picture and are things getting worse on the economic front so that demand would be impacted.”
Gasoline for May delivery rose 0.13 cent to $2.9106 a gallon at 9:42 a.m. on the New York Mercantile Exchange. Trading volume was 13 percent below the 100-day average.
The May crack spread versus WTI gained 20 cents to $29.03 a barrel. The spread against Brent oil on ICE Futures Europe Exchange slipped 4 cents to $17.49.
The Energy Information Administration will probably report tomorrow that U.S. gasoline stockpiles declined 1.5 million barrels in the week ended April 5, according to the median estimate of 10 analysts in the survey. Distillate supplies also fell 1.5 million barrels, according to the survey.
Gasoline at the pump, averaged nationwide, fell 1 cent to $3.583 a gallon, AAA said today on its website. Prices have fallen 20.3 cents from the year-to-date high of $3.786 on Feb. 26 and are 34.4 cents below a year earlier.
Ultra-low-sulfur diesel for May delivery dropped 1.11 cents, or 0.4 percent, to $2.9426 a gallon on volume that was 12 percent above the 100-day average.
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