Gasoline futures(NYMEX:RBM14) traded near a one- month low on speculation that supplies rose last week as refineries restarted units after repairs.
Futures fell as much as 0.3 percent after gaining as much as 0.5 percent. The Energy Information Administration will probably report tomorrow that gasoline inventories rose 500,000 barrels last week, according to the median estimate of 10 analysts in a survey by Bloomberg.
“The refiners are coming out of maintenance and it looks like they’re going to come storming back and producing product at a record pace,” said Phil Flynn, senior market analyst at Price Futures Group in Chicago.
June-delivery gasoline fell 79¢ to $2.9013 a gallon at 12:21 p.m. on the New York Mercantile Exchange. Volume was 35% above the 100-day average.
The EIA is scheduled to report last week’s inventories at 10:30 a.m. tomorrow in Washington.
Prices increased earlier on speculation higher consumption will limit inventory gains. Demand traditionally increases as the U.S. nears the summer driving season that starts over the Memorial Day holiday, which this year falls on May 26. Prices at the pump fell an eighth straight day.
“The market is focusing attention on the upcoming Memorial Day holiday and an increase in demand,” said Andy Lipow, president of Lipow Oil Associates LLC in Houston.
The average U.S. pump price fell 0.6 cent to $3.667 a gallon, according to data from Heathrow, Florida-based AAA today. Prices are 14.6 cents higher than a year ago.
Gasoline’s crack spread versus WTI crude narrowed $1.06 to $21.65 a barrel. The motor fuel’s premium to Brent crude fell 13 cents to $14.34.
Ultra low sulfur diesel for June delivery dropped 0.59 cent to $2.9005 a gallon on volume that was 18 percent below the 100- day average. The survey projected that supplies of distillates, including diesel and heating oil, rose 750,000 barrels.
Diesel’s crack spread versus WTI fell $1.02 to $21.57 a barrel. The premium to Brent fell 10 cents to $14.25.