(For more on the shutdown, click on EXT2.)
Oct. 8 (Bloomberg) -- Ultra-low sulfur diesel jumped to the highest level in almost three weeks on speculation that greater export demand and refinery shutdowns reduced supplies.
Futures rose 0.8 percent as inventories of distillates, including diesel and heating oil, probably fell 1.15 million barrels last week, according to the median estimate of 10 analysts in a survey by Bloomberg. Stockpiles slid 1.68 million barrels in the week ended Sept. 27, the most in three months, Energy Information Administration data show.
“Distillates are the story,” said Amrita Sen, chief oil market strategist at Energy Aspects Ltd., a research company in London. “Distillate stocks just have not built and it’s peak strong demand for distillates in Russia, Europe and Asia as well.”
Ultra-low-sulfur diesel for November delivery advanced 2.32 cents to $3.0325 a gallon on the New York Mercantile Exchange, the highest settlement since Sept. 18. Trading volume was 14 percent below the 100-day average at 3:33 p.m.
ULSD’s premium versus West Texas Intermediate, a rough measure of refining margin, widened 51 cents to $23.88 a barrel while the crack spread over Brent rose 49 cents to $17.21.
The EIA is scheduled to report last week’s inventories at 10:30 a.m. tomorrow in Washington. Gasoline stockpiles probably rose 1.05 million barrels, according to the survey.
Gasoline for November delivery rose 0.45 cent to settle at $2.6306 a gallon. Trading volume was 26 percent below the 100- day average.
The motor fuel’s crack spread versus WTI narrowed 27 cents to $7 a barrel. The fuel’s premium to Brent fell 29 cents to 33 cents.
Pump prices, averaged nationwide, increased 0.3 cent to $3.349 a gallon, 46.9 cents below a year ago, Heathrow, Florida- based AAA said today on its website. It was the first increase since Aug. 31.
--Editors: David Marino, Bill Banker