Gasoline fluctuated on speculation that gasoline may rebound from its lowest level in more than a week and as equities extended this week’s losses, indicating lower fuel demand.
Futures traded in a 7.57-cent range as Bank of America Corp., the biggest U.S. lender by assets, retreated 3.1 percent and JPMorgan Chase & Co. dropped 1.5 percent. Gasoline for September fell 8.71 cents yesterday, the largest drop since Aug. 8.
“There could be more of a propensity to do a little short- covering into the weekend, but it’s anyone’s guess where the market is going,” said Tom Knight, vice president of trading and supply at Truman Arnold Cos. in Texarkana, Texas. “A hard selloff in the equities would drag us lower.”
Gasoline for September delivery rose 1.61 cents, or 0.6 percent, to $2.7993 a gallon at 9:46 a.m. on the New York Mercantile Exchange. Prices traded between $2.7435 and $2.8192.
The Standard & Poor’s 500 Index slumped 0.5 percent to 1,134.75 at 9:47 a.m. in New York. The euro strengthened 0.6 percent against the dollar, boosting the appeal of commodities priced in the U.S. currency, amid speculation European Union regulators may push for joint bond sales by nations in the region to help contain the government debt crisis.
Heating oil for September delivery rose 1.25 cents, or 0.4 percent, to $2.8873 a gallon on the exchange. Futures slipped as much as 1.5 percent earlier.
Regular gasoline at the pump, averaged nationwide, was unchanged at $3.585 a gallon yesterday, according to AAA data.
To contact the reporter on this story: Paul Burkhardt in New York at pburkhardt@bloomberg.net
To contact the editor responsible for this story: Bill Banker at bbanker@bloomberg.net
