The price of gasoline for future delivery surged as more Americans commuted to the workplace, indicating the demand for the auto fuel will increase during the summer driving season.
Futures advanced for the second straight day as a US job report showed an addition of 192,000 people in the working class for the month of March.
The motor fuel for May settlement hit $2.931 per gallon after gaining 0.7% or 1.92 cents on the New York Mercantile Exchange. However, the day’s volume was 12% lower than the computed mean for 100 days, as Bloomberg reports.
Gasoline’s crack spread versus West Texas Intermediate crude lost 9 cents to $21.92 for every barrel. On the other hand, the fuel’s premium versus Brent added 52 cents to $16.32.
Gasoline prices at US pumps stood at $3.57 on average, having risen 0.4% to the highest level since September 8.
May delivery ultra low sulfur diesel gained 1.53 cents or 0.5% and sold at $2.9215 per gallon. Its volume for the day was 34% lower the calculated average for 100 days.
Diesel’s crack spread against West Texas Intermediate lost a margin of 26 cents to trade at $21.51 per barrel. The commodity’s premium to Brent stood at $15.90, having added 25 cents.
According to Marketwatch, most of the gasoline in the market has ethanol in it, and motorists are bound to pay more for the motor fuel, with the price of its additive having surged 30% this year and 22% in March alone.
The news sites quotes oil analyst Tom Kloza of GasBuddy as saying, “No market in energy has had the off-the-charts increases that we’ve seen in ethanol in 2014.”
The analyst said that adding ethanol to gasoline has resulted in price hikes for the processed motor fuel, with the blending of high-priced ethanol pushing gas prices up by about 10 cents in recent weeks.
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