Gasoline futures rose as equities advanced after a Labor Department report that the U.S. added more jobs than forecast last month. Crack spreads narrowed.
Futures extended a weekly gain as the Standard & Poor’s 500 Index rallied as much as 1 percent after a report showing a jobs gain of 175,000 in May was balanced by an uptick in the jobless rate, indicating the Federal Reserve may not see enough improvement in the labor market to warrant reducing its economic stimulus efforts.
“On balance, the report has been viewed as positive, but not strong enough for the Fed to change its action,” said Amrita Sen, chief oil market strategist at Energy Aspects Ltd., a research company in London.
Gasoline for July delivery rose 1.82 cents, or 0.6 percent, to $2.8691 a gallon at 10:33 a.m. on the New York Mercantile Exchange. Trading volume was 6 percent below the 100-day average. Gasoline was headed for a weekly gain of 3.3 percent.
July gasoline’s crack spread versus West Texas Intermediate narrowed 12 cents to $24.86 a barrel. Gasoline’s premium over Brent fell 4 cents to $16.09.
Ultra-low-sulfur diesel for July delivery rose 2.55 cents, or 0.9 percent, to $2.8969 a gallon, and was headed for a 3.8 percent weekly gain. Trading volume was 3.1 percent below the 100-day average.
The July ULSD contract’s crack spread versus West Texas Intermediate crude oil widened 19 cents to $26.03 a barrel, while the premium over Brent increased 24 cents to $17.23.
Gasoline at the pump, averaged nationwide, rose.3 cents to $3.633 a gallon, Heathrow, Florida-based AAA, the nation’s largest motoring organization, said today on its website. Prices are 7.3 cents above a year earlier.
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