By Bloomberg
Diesel futures strengthened as crack spreads between the fuel and West Texas Intermediate widened from the narrowest level since October.
Diesel gained 0.9 percent at 11:19 a.m. in New York as its spread versus WTI widened 60 cents to $23.23 a barrel. The premium reached $21.47 on March 19, the lowest level in more than five months, according to data compiled by Bloomberg.
Ultra low sulfur diesel for April delivery rose 2.72 cents to $2.9388 a gallon on the New York Mercantile Exchange on volume that was 5 percent below the 100-day average.
“We’re seeing the buying of the crack spreads driving that heating oil contract today,” said Eric Rosenfeldt, the vice president of sales, supply and trading for petroleum marketer Papco Inc. in Virginia Beach, Virginia. “It got to a level where people said the diesel market is going to remain strong in relation to the crude oil market.”
Diesel’s premium over European benchmark Brent advanced 25 cents to $15.90.
April-delivery gasoline advanced 0.95 cent to $2.9004 a gallon on the New York Mercantile Exchange. Volume was double the 100-day average.
The motor fuel’s crack spread versus WTI narrowed 1.6 cents to a premium of $21.48 a barrel. Gasoline’s premium to Brent slipped 47 cents to $14.12.
The average U.S. pump price rose 0.2 cent to $3.531 a gallon, the most since Sept. 13, according to data from Heathrow, Florida-based AAA. Drivers are paying 13.6 cents less than a year ago.
To contact the reporter on this story: Eliot Caroom in New York at ecaroom@bloomberg.net
To contact the editors responsible for this story: Dan Stets at dstets@bloomberg.net Charlotte Porter, Bill Banker
