Ultra-low sulfur diesel slid to a nine-month low as Brent crude and gasoil slipped amid declining fuel demand in Europe.
Futures fell 1 percent as Brent crude dropped below $100 a barrel for the first time since July. Gasoil weakened in Europe, indicating less need for distillate exports from the U.S. European oil demand will slide by 340,000 barrels a day this year, the International Energy Agency forecast April 11.
“The issue with gasoil, and generally European products, is that European domestic demand has weakened and there are more exports coming from the U.S.,” said Amrita Sen, chief oil market strategist at Energy Aspects Ltd., a research company in London. “Refineries are also coming out of maintenance and winter weather is ending.”
Ultra-low-sulfur diesel for May delivery declined 2.94 cents to $2.7998 a gallon at 9:47 a.m. on the New York Mercantile Exchange on volume that was 7.7 percent below the 100-day average. Prices touched $2.7712, the lowest intraday level since July 13.
The fuel’s crack spread versus May West Texas Intermediate crude narrowed 48 cents to $29.64 a barrel.
Gasoil in Europe for May delivery on the ICE Futures Europe exchange fell 0.7 percent to $841 a metric ton. Brent for June settlement fell $1.08 to $99.55 a barrel.
Gasoline for May delivery sank 2.01 cents, or 0.7 percent, to $2.7375 a gallon on volume that was 20 percent above the 100- day average. Prices touched $2.7036, the lowest intraday level in three months.
Gasoline at the pump, averaged nationwide, fell 0.4 cent to $3.522 a gallon, AAA said today on its website. Prices have fallen 26.4 cents from the year-to-date high of $3.786 on Feb. 26 and are 38.5 cents below a year ago.
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