By CHRISTINE HARVEY
Diesel futures rose, heading for the highest level in nearly
three weeks, on speculation greater demand for exports will
draw down US stockpiles of the fuel.
Futures climbed as much as 0.6%. Shipments abroad from the US
Gulf Coast, home to more than half of the nations refining
capacity, climbed 22% to
a total of 33 in the week ended May 16, according to
shipbroker Charles R. Weber Co. US distillate stockpiles were
at 113 million bbl as of May 9, the lowest level since April
18, government data showed.
For diesel, demand for exports remain very robust and
thats providing support for prices, Gene
McGillian, an analyst and broker for Tradition Energy in
Stamford, Connecticut, said by phone.
June-delivery diesel advanced 1.67 cents to $2.9703/gal on
the New York Mercantile Exchange. Prices touched $2.9725, the
highest intra-day level since April 29, according to data
compiled by Bloomberg.
Diesels crack spread versus West Texas Intermediate
crude narrowed 19 cents to $21.93/bbl, while the motor
fuels premium to Europe
an benchmark Brent widened
28 cents to $14.35.
Voyages from the Gulf Coast to Europe
totaled eight last week,
while those to Latin America were largely stable
at 12, a weekly report from Greenwich, Connecticut-based
Charles R. Weber showed. Ships calculated in the report are
transporting refined products including diesel and motor
Gasoline for delivery next month rose 1.13 cents, or 0.4%, to
$2.9848/gal. The motor fuels crack spread versus WTI
crude declined 33 cents to $22.54/bbl. The motor fuels
premium to Brent gained 10 cents to $14.50.
The average US pump price was unchanged at $3.646/gal,
according to data from Heathrow, Florida-based AAA.