U.S. gasoline-futures prices have dropped 16 cents a gallon over the past eight trading days, as more U.S. crude becomes available for refining into gasoline and fears about a shortage of refining capacity fade.
Reformulated gasoline blendstock futures fell 2.8 cents Tuesday to settle at $3.1593 a gallon, and have repeatedly traded near seven-week lows in recent days. Many traders said futures prices may have hit their summer peak in late March, at near $3.42 a gallon, and see futures falling further in coming weeks, easing retail prices at the pump.
Helping to spur the downturn is the reversal of a pipeline’s flow that will give refiners in the Gulf Coast region greater access to crude, the basic feedstock for gasoline. North Sea Brent crude, the European benchmark which holds sway over gasoline prices, already has fallen by more than $7 a barrel this month, partly on this development.
The decline in gasoline futures comes at a time when the U.S. oil benchmark, West Texas Intermediate, has climbed 0.51% this month. But gasoline is priced off Brent crude.
More information available via: Gasoline Futures Tumble As Oil-Supply Fears Ebb – WSJ.com.