BS: Gasoline Futures Advance in N.Y. as Dollar Weakens on ECB Action
Gasoline rose as the dollar slipped after the European Central Bank took additional measures to improve bank’s access to funds.
Futures gained for the first time in five days after the ECB said it decided this week to relax rules on the collateral that banks can offer in exchange for central bank funds. The dollar weakened 0.2 percent against the euro after the announcement, reversing an earlier gain, raising the appeal of commodities as an investment.
“This is a market that’s been begging for stimulus the last couple days,” said Phil Flynn, senior market analyst at the Price Futures Group in Chicago. “It stopped the freefall,” he said.
Gasoline for July delivery increased 1.5 cents, or 0.6 percent, to $2.5651 a gallon at 9:46 a.m. on the New York Mercantile Exchange.
The U.S. Federal Reserve on June 20 extended its program to replace short-term bonds with longer-term debt without launching a third round of quantitative easing.
“Maybe the reason Bernanke is keeping his bullets in his holster is because he thinks it’s Europe’s turn,” Flynn said.
Heating oil for July delivery rose 0.27 cent to $2.528 a gallon on the Nymex.
Regular gasoline at the pump, averaged nationwide, fell 0.5 cent to $3.454 a gallon yesterday, according to AAA. It was the lowest price since Jan. 31.
To contact the reporter on this story: Paul Burkhardt in New York at pburkhardt@bloomberg.net
To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net
