Gasoline Prices Retreat Sharply Amid Profit-Taking and Increasing Refinery Runs

Strategic Insights -

Gasoline prices plummeted on Tuesday, driven by profit-taking after a four-day price hike and expectations of high refinery runs and increased inventories. Analysts' estimates, although often wrong, heavily influence trading. The sharp decline in prices comes as oil companies continue to reduce wholesale unleaded regular prices, cutting 0.34 cents to an average of 53.01 cents/gallon. October futures tumbled across the board, with unleaded regular gasoline declining 0.91 cents to 45.13 cents/gallon on the New York Mercantile Exchange.

Key Takeaways:

  • Gasoline prices retreated sharply on Tuesday, reversing a four-day price hike, due to profit-taking and expectations of increased refinery runs and inventories.
  • Unleaded regular gasoline futures for October delivery to New York Harbor tumbled 0.91 cents to 45.13 cents/gallon on the New York Mercantile Exchange.
  • November futures dropped 0.62 cents to 45.40 cents, while December reformulated gasoline declined 0.55 cents to 52.70 cents, as the reformulated premium widened to 7.3 cents/gallon.
  • Oil companies continued to reduce wholesale unleaded regular prices, cutting 0.34 cents to an average of 53.01 cents/gallon, according to The Oil Daily's nationwide rack price survey.
  • October No. 2 heating oil futures edged up 0.03 cents/gallon to 48.35 cents, despite a projected excessive buildup in winter inventories.
  • Wholesale low-sulfur diesel increased 0.19 cents to 52.95 cents/gallon, now nearly equaling unleaded regular.
  • October natural gas futures plunged 7.7 cents to $1.556/MMBtu, with futures falling below cash prices for the first time in months.

Statistics:

  • Gasoline price decline: 0.91 cents/gallon for unleaded regular gasoline futures for October delivery.
  • Refinery run expectations: High refinery runs and increased inventories are expected to impact gasoline prices.
  • Oil company wholesale price cut: 0.34 cents to an average of 53.01 cents/gallon for unleaded regular gasoline.
  • Heating oil increase: 0.03 cents/gallon to 48.35 cents for October No. 2 futures.
  • Diesel price increase: 0.19 cents to 52.95 cents/gallon for wholesale low-sulfur diesel.
  • Natural gas price decline: 7.7 cents to $1.556/MMBtu for October futures.

Sources:

  • The Oil Daily, nationwide rack price survey
  • New York Mercantile Exchange, unleaded regular gasoline futures for October delivery
  • Computer Petroleum Corp., nationwide rack price survey
  • London's International Petroleum Exchange, October North Sea Brent futures
  • West Texas Intermediate (WTI) crude oil futures for October delivery on the New York Mercantile Exchange.