Tuesday, December 18, 2018
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Gasoline Jumps to Three-Week High on Speculation Supplies Fell

Gasoline futures jumped to a three-week high on speculation that U.S. inventories of the motor fuel declined last week.

Futures gained as much as 1 percent. The Energy Information Administration will probably report tomorrow that gasoline stockpiles fell 1 million barrels in the week ended April 4, according to the median estimate of 10 analysts in a survey by Bloomberg. It would be the seventh consecutive drop.

"Gasoline is supported on the expectation that inventories will continue to draw as the spring driving season commences," said Andy Lipow, president of Lipow Oil Associates LLC in Houston.

May-delivery gasoline advanced 1.6 cents, or 0.6 percent, to $2.942 a gallon at 9:40 a.m. on the New York Mercantile Exchange. Prices touched $2.956, the highest intraday price since March 17. Volume was 55 percent above the 100-day average.

Inventories in the week ended March 28 were the lowest since November, according to data from the EIA, the Energy Department's statistical arm. The agency is scheduled to report last week's inventories at 10:30 a.m. tomorrow in Washington.

The motor fuel's crack spread versus West Texas Intermediate crude widened 16 cents to $22.61 a barrel. Gasoline's premium to Brent increased 37 cents to $17.47.

The average U.S. pump price rose 0.7 cent to $3.59, the highest since Sept. 4, according to data from Heathrow, Florida-based AAA.

Ultra low sulfur diesel for May delivery gained 0.93 cent, or 0.3 percent, to $2.90 a gallon on volume that was 47 percent below the 100-day average. The survey projected that inventories of distillates, including diesel and jet fuel, probably fell 250,000 barrels last week.

Diesel's crack spread versus WTI narrowed 24 cents to $20.73. The premium to Brent rose 13 cents to $15.66.

To contact the reporter on this story: Barbara Powell in Houston at This email address is being protected from spambots. You need JavaScript enabled to view it.

To contact the editors responsible for this story: Dan Stets at This email address is being protected from spambots. You need JavaScript enabled to view it. Charlotte Porter


  • Department of Energy Weekly Report (Wednesdays 10:30am est)
  • American Petroleum Institute Weekly Report (Wednesdays 10:30am Est)
  • Natural Gas Inventories Weekly Report (Thursdays 10:30am est)
  • OPEC Production Quotas
  • OPEC Monthly Oil Market Report
  • Non-OPEC Oil Production
  • Mideast Stability
  • Weather- Related demand
  • CFTC Commitment of Traders Report
  • Energy Information Administration Report (Tuesday afternoons)
  • International Energy Agency Policy
  • Chinese (Asian) demand
  • Iraqi production and export levels
  • Russian shale production
  • Alternation Energy production and technological breakthroughs
  • Inflation
  • Dollar weakness and purchasing power
  • Refining Capacity
  • Weather related refining production limitations (eg hurricanes in the gulf)
  • Venezuelan Production
  • Venezuelan Foreign Policy in relation with US
  • Iran Nuclear dispute status
  • US Strategic Petroleum Reserves
  • US New Drilling and Exploratory Initiatives
  • Oil Spills
  • International Energy Agency Reserves
  • General Accountability Office Study on Geopolitical Disruptions
  • International and Domestic Tax rates relating to oil and gasoline
  • New Geopolitical order after Arab Spring

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