Gasoline Prices Remain Stable Despite Refinery Difficulties and Tightening Supply

Strategic Insights -

Despite a small dip in gasoline futures prices, cash prices for gasoline remained stable on Friday, according to a Midcontinent-based trader. The tight supply and ongoing refinery difficulties, particularly at Sun Oil Co.'s and Koch Industries Inc.'s refineries, prompted cash traders to maintain strong prices. The trader noted that prices in the Gulf Coast region had climbed about 3 cents over the week to 57 cents per gallon, with refinery problems affecting gasoline deliveries to the East and Gulf Coasts.

Key Takeaways:

  • Gasoline futures prices softened by 0.39 cents to settle at 61.69 cents per gallon on the New York Mercantile Exchange, but are still dramatically higher than one year ago at 48.82 cents.
  • Crude oil prices on Nymex dropped by 10 cents to settle at $19.67 per barrel, but are more than $4 higher than at this time last year.
  • West Texas Intermediate (WTI) crude at Cushing, Okla., fell by 15-20 cents to $19.60 per barrel, with a trader anticipating a flat price correction.
  • Heating oil prices on the cash market were largely unchanged due to weak physical demand.
  • Gasoline stocks are currently 2.1 million barrels lower than last year, according to the Energy Information Administration.
  • Refinery problems at Sun Oil Co.'s 40,000 b/d catalytic cracker and Koch Industries Inc.'s Corpus Christi refinery are affecting gasoline deliveries to the East and Gulf Coasts.

Statistics:

  • Gasoline futures prices settled at 61.69 cents per gallon on the New York Mercantile Exchange.
  • Crude oil prices on Nymex dropped by 10 cents to settle at $19.67 per barrel.
  • West Texas Intermediate (WTI) crude at Cushing, Okla., fell by 15-20 cents to $19.60 per barrel.
  • Heating oil prices on the cash market remained largely unchanged.
  • Gasoline stocks are 2.1 million barrels lower than last year, according to the Energy Information Administration.

Sources:

  • A Midcontinent-based trader, as quoted in the article.
  • Energy Information Administration, as quoted in the article.