US gasoline futures plunge on supply build

24 June 2009 22:38  [Source: ICIS news]

HOUSTON (ICIS news)--US reformulated gasoline blendstock for oxygenate blending (RBOB) futures prices dropped 5.07 cents on Wednesday, as the market reacted to a larger-than-expected build in domestic gasoline inventories last week.

RBOB for July delivery settled on the NYMEX at $1.8425/gal.

According to the US Energy Information Administration (EIA), US gasoline stockpiles increased by 3.9m bbl last week, pushing total inventory levels to 208.9m bbl.

Analysts had expected a 1.3m bbl rise in stockpiles when the weekly report was released this morning.

Weaker demand for gasoline also contributed to lower prices, as the EIA reported a slight drop in daily gasoline usage for 2009 compared with last year.

Moreover, US automobile consumer organization AAA said on Wednesday that travel during the 4 July holiday weekend is expected to decline by 1.95%, with higher fuel prices and economic pessimism leading more Americans to stay home.

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By: Steven McGinn
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