Gasoline fell for a second day on speculation that U.S. fuel supplies are increasing. Crack spreads narrowed.
Futures dropped as much as 2.2 percent. An Energy Information Administration report tomorrow may show gasoline stockpiles probably rose 500,000 barrels, or 0.2 percent, to 219.3 million, based on the median of 10 analyst estimates compiled by Bloomberg. Six respondents projected a gain and four forecast a drop.
“The market could see pressure from improving gasoline supplies as refiners turn this near-record amount of crude oil inventory into increasing amounts of products,” Andy Lipow, president of Lipow Oil Associates LLC in Houston, said in a phone interview.
Gasoline for July delivery fell 5.5 cents, or 1.9 percent, to $2.7931 a gallon at 10:14a.m. on the New York Mercantile Exchange. Trading volume was 10 percent above the 100-day average.
July gasoline’s crack spread versus West Texas Intermediate slipped 95 cents to $22.90 a barrel. Gasoline’s premium over Brent declined 40 cents to $15.27.
Ultra-low-sulfur diesel for July delivery fell 4.24 cents, or 1.5 percent, to $2.8414 a gallon. Trading volume was 15 percent below the 100-day average.
The July ULSD contract’s crack spread versus WTI narrowed 40 cents to $24.95 a barrel, while the premium over Brent widened 11 cents to $17.28.
Gasoline at the pump, averaged nationwide, fell 0.2 cent to $3.633 a gallon, Heathrow, Florida-based AAA, the nation’s largest motoring organization, said today on its website. Prices are 9.3 cents above a year earlier.
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