BLOOMBERG

 

Gasoline Rises as U.S. Employers Add More Workers Than Expected

By Dan Murtaugh - November 08, 2013

 

Gasoline rose from the lowest level since 2011 as U.S. employers added more workers to payrolls in
October than forecast by economists.


Futures gained as much as 1 percent. The Labor Department reported an addition of 204,000 workers to
payrolls in October, above the 120,000 figure that was the median forecast of 91 economists surveyed by
Bloomberg. September payroll gains were revised upward to 163,000.


“We’re definitely getting a little bit of a rebound off of the jobs number,” said Phil Flynn, senior market
analyst for The Price Futures Group in Chicago. “People are making more money, so they drive more,
and they have jobs, so they commute to work, and that increases gasoline demand.”


Gasoline for December delivery rose 0.54 cent to $2.5085 a gallon on the New York Mercantile
Exchange at 10:09 a.m. Trading volume on all contracts was 23 percent lower than the 100-day average.


Gasoline’s crack spread versus WTI widened 4 cents to $10.97 a barrel. The fuel’s premium versus Brent
increased 3 cents to $1.70.


U.S. pump prices, averaged nationwide, fell 1.1 cent to $3.211 a gallon, the lowest level since Dec. 20,
2011, Heathrow, Florida-based AAA said today on its website. Prices are 25.3 cents below a year ago.


Ultra-low-sulfur diesel for December delivery slipped 0.07 cent to $2.8385 a gallon. Volume was 15
percent below the 100-day average.


ULSD’s premium over WTI fell 23 cents to $24.82 a barrel. The spread versus Brent narrowed 28 cents
to $15.51.


To contact the reporter on this story: Dan Murtaugh in Houston at dmurtaugh@bloomberg.net
To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net

 

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 IN 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.