Gasoline Prices Gain Amid Declining Crude Oil Prices, Natural Gas Prices Continue to Slide

Strategic Insights -

Gasoline prices picked up slightly on Wednesday as crude oil prices declined, despite lower-than-expected gains due to stock and refinery run data. Meanwhile, natural gas prices continued to drop in both futures and spot markets. Unleaded regular gasoline futures for June delivery to New York Harbor rose 0.09* to 51.67*/gallon, while West Texas Intermediate (WTI) crude oil futures for July delivery plummeted 22* to $17.70/bbl.

Key Takeaways:

  • Gasoline prices increased by 0.09* to 51.67*/gallon for June delivery, despite lower-than-expected gains.
  • West Texas Intermediate (WTI) crude oil futures for July delivery dropped 22* to $17.70/bbl.
  • The 3-2-1 crack spread increased 19* to $3.43/bbl, driven by off-season strength in June No. 2 heating oil futures.
  • Distillate stocks showed a surprise drawdown of 990,000 bbl last week, with 50% of the decrease attributed to diesel fuel demand in the Midwest.
  • July North Sea Brent crude oil futures dropped 20* to $16.12/bbl, keeping the WTI-Brent spread at $1.58/bbl.
  • Wholesale product prices declined across the board, with unleaded regular down 0.06* to 56.04*/gallon, No. 2 down 0.14* to 50.91*/gallon, and low-sulfur diesel down 0.15* to 52.18*/gallon.
  • July natural gas futures fell 4.8* to $1.836/MMBtu, with spot prices at the Louisiana Gulf Coast in the range of $1.76-$1.80/MMBtu.

Statistics:

  • Gasoline prices increased by 0.09* to 51.67*/gallon.
  • WTI crude oil futures for July delivery dropped 22* to $17.70/bbl.
  • The 3-2-1 crack spread increased 19* to $3.43/bbl.
  • Distillate stocks declined by 990,000 bbl last week.
  • Diesel fuel demand in the Midwest accounted for 50% of the distillate stock drawdown.
  • July North Sea Brent crude oil futures dropped 20* to $16.12/bbl.
  • Wholesale product prices declined across the board, with unleaded regular down 0.06* to 56.04*/gallon.
  • July natural gas futures fell 4.8* to $1.836/MMBtu.
  • Spot prices at the Louisiana Gulf Coast were in the range of $1.76-$1.80/MMBtu.

Sources:

  • The Oil Daily nationwide rack price survey
  • Computer Petroleum Corp.