SF: Gasoline Futures Slip as Inventories Stay Near 14-Week High
Aug. 18 (Bloomberg) -- Gasoline maintained a loss after a report that inventories were little changed near a 14-week high as the U.S. nears the end of summer driving season.
The Energy Department reported gasoline inventories fell 39,000 barrels last week to 223.3 million. Stockpiles have expanded 2.7 percent since June 18 and are 6.5 percent above a year earlier. The higher-demand season traditionally ends after the Labor Day holiday, which falls on Sept. 6 this year.
"People are starting to realize we're swimming in supplies," said Phil Flynn, vice president of research at PFGBest in Chicago.
Gasoline for September delivery lost 1.37 cents, or 0.7 percent, to $1.9395 a gallon at 11:39 a.m. on the New York Mercantile Exchange.
Inventories of the motor fuel have risen seven of the past eight weeks. Gasoline supplies were projected to fall 375,000 barrels, according to the consensus estimate of 18 analysts in a survey by Bloomberg News.
Demand, measured by what refiners and blenders supplied to wholesalers, rose 2.4 percent to 9.46 million barrels a day. Measured on a four-week average, demand was 3.5 percent above a year earlier.
Imports jumped 13 percent to an average 1.08 million barrels a day. Refiners raised rates last week by 1.9 percentage points to 90 percent of capacity.
The premium of gasoline over crude oil, or the crack spread, based on September contracts, widened about 46 cents to $6.72 a barrel.
Distillate Supplies
Supplies of distillates, including diesel and heating oil, rose 1.1 million barrels to 174.2 million, 7.8 percent above a year earlier and the highest level since January 1983. The survey projected an increase of 1.5 million barrels.
Distillate demand rose for the first time in three weeks, gaining 8.1 percent to 3.7 million barrels a day. Consumption, measured on a four-week basis, was 5.8 percent above a year earlier.
Heating oil for September delivery dropped 1.17 cents, or 0.6 percent, to $2.0142 a gallon. The heating oil crack spread, based on September contracts, widened about 50 cents to $9.82 a barrel.
Regular gasoline at the pump, averaged nationwide, fell 0.5 cent to $2.737 a gallon yesterday, AAA said on its website.
