BLOOMBERG

 

Gasoline, Diesel Advance as Brent Rallies on Libya Disruptions

By Barbara Powell - Nov 13, 2013

 

Gasoline and ultra-low sulfur diesel rose, following Brent crude higher as protests in Libya
disrupted oil exports.


Futures gained as Brent advanced as much as 1.4 percent. Protesters stopped a tanker from
Idocking at the port of Hariga, said Mohamed Elharari, a spokesman for state-run National Oil
Corp. The Zawiya refinery reopened after being shut by protests yesterday, he said. The country's
utput in October was down 69 percent from a year earlier, according to a Bloomberg survey.


"Products are being drawn up by Brent and Brent is reacting to supply disruptions out of Libya,"
said Andy Lipow, president of Lipow Oil Associates LLC in Houston.


Gasoline for December delivery rose 4.1 cents, or 1.6 percent, to $2.6274 a gallon at 10:08 a.m. on
the New York Mercantile Exchange. Trading volume was 12 percent below the 100-day average.


Brent for December settlement, which expires tomorrow, gained $1.20 to $107.01 a barrel on the
London-based ICE Futures Europe exchange. The more-active January contract added $1.15 to
$106.69. December Brent traded at a $13.30 premium to West Texas Intermediate crude on
Nymex, up from $12.77 yesterday.


"The Brent crude is definitely leading the way once again and it's keeping the products moving as
Nell," said Phil Flynn, senior market analyst at Price Futures Group in Chicago.


Gasoline Inventories
Supplies of gasoline, already the lowest in almost a year, probably declined 900,00o barrels last
week, according to the median estimate of 11 analysts in a survey by Bloomberg. The Energy
Information Administration is scheduled to report inventories for the week ended Nov. 8
tomorrow at 11 a.m. in Washington, a day later than usual because of the Veterans Day holiday
Nov. 11.

 

Gasoline's crack spread versus WTI widened $1.08 to $16.67 a barrel. The fuel's premium to Brent
rose 58 cents to $3.40.


U.S. pump prices, averaged nationwide, rose 0.7 cent to $3.186 a gallon, Heathrow, Florida-based
AAA said today on its website. Prices are 25.4 cents below a year ago.


Distillate inventories, including heating oil and diesel, fell 1 million barrels, according to the
survey.


Ultra-low-sulfur diesel for December delivery advanced 3.68 cents, or 1.3 percent, to $2.89 a gallon
on trading volume that was 5.8 percent below the 100-day average.


ULSD's premium over WTI widened 87 cents to $27.66 a barrel. The fuel's crack spread versus
rent increased 37 cents to $14.39.


To contact the reporter on this story: Barbara Powell in Houston at bpowel14@bloomberg.net
To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net
2013 BLOOMBERG L.P. ALL RIGHTS RESERVED.


FUTURES AND OPTIONS TRADING INVOLVE SIGNIFICANT RISK OF LOSS AND MAY NOT BE SUITABLE
FOR EVERYONE. OPTIONS, CASH AND FUTURES MARKETS ARE SEPARATE AND DISTINCT AND DO NOT
NECESSARILY RESPOND !N THE SAME WAY TO SIMILAR MARKETS STIMULUS. A MOVEMENT IN THE
CASH MARKET WOULD NOT NECESSARILY MOVE IN TANDEM WITH THE RELATED FUTURES & OPTIONS
CONTRACT BEING OFFERED. SEASONAL DEMAND AND CURRENT NEWS IN COMMODITIES ARE
ALREADY REFLECTED IN THE PRICE OF THE UNDERLYING FUTURES.