Diesel Slips to 8-Week Low on Spring’s Approach, WTI Decline Diesel slid to an eight-week low on speculation heating oil demand will drop as temperatures increase and as West Texas Intermediate crude sank on rising inventories. Futures fell as much as 1.4 percent. WTI retreated below $100 a barrel as oil stockpiles continue to climb along the Gulf Coast, home to about half of U.S. refining capacity. Temperatures in New York City, the delivery point for New York Mercantile Exchange diesel contracts, will increase to 55 degrees Fahrenheit (13 Celsius) March 15, according to AccuWeather. “WTI is leading the market down, with this big surplus of crude oil building in the Gulf Coast,” said Dominick Chirichella, senior partner at the Energy Management Institute in New York. “Winter is over for all intents and purposes so we’re not going to get a big pull on distillates.” Ultra low sulfur diesel for April delivery fell 2.66 cents, or 0.9 percent, to $2.9344 a gallon at 10:17 a.m. on the New York Mercantile Exchange on volume that was 41 percent above the 100-day average. Prices touched $2.92, the lowest intraday price since January 14. The American Petroleum Institute reported yesterday that supplies of distillates, including diesel and heating oil, fell 839,000 barrels. Crude [...] newsintx/diesel-slips-to-8-week-low-on-springs-approach-wti-decline/
Posted on: Wed, 12 Mar 2014 16:30:59 +0000
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