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Petroleum

Gasoline Futures Prices Plummet on NYMEX

Strategic Insights

— 1 min read

Trading on the New York Mercantile Exchange (Nymex) saw an unexpected decline in gasoline futures prices, with April and May contracts falling to 56.74 cents/gallon and 56.29 cents/gallon, respectively. The drop in price of methyl tertiary butyl ether (MTBE) may further contribute to the decline in gasoline futures prices. Analysts attribute the unexpected drop to a combination of factors, including technical analysis and changes in crude oil inventory statistics.

Key Takeaways:

  • Gasoline futures prices dropped 1.83 cents and 1.43 cents for April and May contracts, respectively, to 56.74 cents/gallon and 56.29 cents/gallon.
  • The April-May gasoline spread narrowed to 0.45 cents from Tuesday's 0.85 cents.
  • Prices for MTBE, the primary additive in reformulated gasoline, have fallen about 15 cents to 80 cents/gallon over the past week.
  • April light, sweet crude futures dropped 17 cents to $18.32/bbl, while March light, sweet crude futures dropped 17 cents to $18.18/bbl.
  • April heating oil futures prices fell 9.76 cents to 46.44 cents/gallon, while May heating oil futures prices fell 0.61 cents to 46.76 cents/gallon.
  • The Clinton administration's public endorsement of lifting the ban on Alaska North Slope (ANS) crude exports had no noticeable effect on futures trading.
  • Iran has accused the United States of trying to damage its relations with neighboring Arab states following reports of armed anti-aircraft missile launchers on an island in the Strait of Hormuz.

Statistics:

  • Gasoline futures prices dropped 1.83 cents and 1.43 cents for April and May contracts, respectively.
  • MTBE prices fell about 15 cents to 80 cents/gallon over the past week.
  • April light, sweet crude futures dropped 17 cents to $18.32/bbl.
  • April heating oil futures prices fell 9.76 cents to 46.44 cents/gallon.
  • The April-May gasoline spread narrowed to 0.45 cents from Tuesday's 0.85 cents.

Sources:

  • "New York Mercantile Exchange" (Nymex)
  • "Pegasus Econometric Group"
  • Clinton Administration (public endorsement of lifting the ban on Alaska North Slope (ANS) crude exports)
  • Iran (accusation of the United States)

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