Sept. 5 (Bloomberg) -- Gasoline fell for a fifth straight day after the Energy Information Administration said supplies on the U.S. East Coast were little changed last week.
Futures sank 1 percent. Inventories in PADD 1, where New York-traded futures contracts are delivered, slipped 36,000 barrels to 58.3 million as of Aug. 30. Stockpiles nationwide declined 1.83 million barrels to 216 million. Demand rose 0.7 percent while consumption over four weeks was 0.2 percent below a year earlier.
“There were no great changes in the demand,” said Andy Lipow, president of Lipow Oil Associates LLC in Houston. “Inventories are still 17 million barrels higher than this time last year.”
Gasoline for October delivery declined 2.83 cents to $2.836 a gallon on the New York Mercantile Exchange. Trading volume was 5.5 percent above the 100-day average at 3:04 p.m.
The October contract’s premium to November narrowed 0.84 cent to 1.37 cents, indicating supplies are ample to meet demand. The front-month contract has not been in contango, or valued less than later-month contracts, since April 30.
The motor fuel’s crack spread versus West Texas Intermediate crude narrowed $2.28 to $10.79 a barrel, the smallest since December 2011. The spread shrank as WTI rose 1.1 percent to $108.37 after EIA data showed inventories at Cushing, Oklahoma, the delivery point for Nymex futures, fell to the lowest level since February 2012.
“Because Cushing drew by nearly 2 million, WTI found a lot of support and that’s why cracks came off,” said Amrita Sen, chief oil market strategist at Energy Aspects Ltd., a research company in London.
The fuel’s premium over Brent fell $1.59 to $3.80 a barrel, the least since January.
Pump prices, averaged nationwide, fell 0.2 cent to $3.587 a gallon, Heathrow, Florida-based AAA said today on its website. Retail gasoline is 23.7 cents below a year earlier.
Ultra-low-sulfur diesel for October delivery rose 0.26 cent to $3.1397 a gallon on trading volume that was 26 percent below the 100-day average.
Distillate inventories, including diesel and heating oil, increased 549,000 barrels to 129.6 million.
ULSD’s crack spread versus WTI narrowed 99 cents to $23.53 a barrel while the premium over Brent dropped 24 cents to $16.61 a barrel.
--Editors: Charlotte Porter, Dan Stets