Crude, Gasoline, Heating Oil Slip for Second Day: Oil Products

Crude oil, gasoline and heating oil declined for a second day as U.S. housing starts dropped and industrial output stalled in April, damping optimism about the economic and fuel-demand outlook. Ethanol advanced.

The Commerce Department said work began on 523,000 houses at an annual pace, down 11 percent from March. Production at factories, mines and utilities was unchanged, the Federal Reserve reported.

Crude Oil

Crude oil for June delivery dropped 46 cents, or 0.5 percent, to $96.91 a barrel on the New York Mercantile Exchange. Crude has fallen 15 percent in May and gained 38 percent in the past year.

U.S. oil supplies probably climbed 1.7 million barrels last week from the previous week’s 370.3 million, according to a Bloomberg News survey of 15 analysts. The Energy Department reports on stockpiles tomorrow. The American Petroleum Institute said inventories rose 2.67 million barrels to 369.9 million.

Gasoline

Gasoline for June delivery declined 1.18 cents, or 0.4 percent, to $2.9193 a gallon on the Nymex. Gasoline has dropped 16 percent in May and risen 43 percent in the past year.

Stockpiles probably grew 950,000 barrels last week from the previous week’s 205.8 million, according to the analysts’ median estimate. The API said inventories declined 676,000 barrels to 208.8 million.

Heating Oil

Heating oil for June delivery slid 2.93 cents, or 1 percent, to $2.8451 a gallon. Heating oil has gained 43 percent in a year.

Stockpiles probably increased 250,000 barrels last week from the previous week’s 144.3 million, according to the analysts’ median estimate.

Ethanol

Denatured ethanol for June delivery gained 4.9 cents, or 1.9 percent, on the Chicago Board of Trade. Ethanol’s discount to gasoline, which reached 86.68 cents on April 28, narrowed 6.08 cents to 33.53 cents, the smallest spread since Feb. 28.

Refineries and Transport

Delek US Holdings Inc. reported emissions at its Tyler, Texas, refinery yesterday, according to a filing with state regulators. The company had excess opacity at a boiler stack for about 6 minutes during “non-routine” operations, according to the Texas Commission on Environmental Quality.

(Source: http://www.bloomberg.com/news/2011-05-17/crude-gasoline-heating-oil-slip-for-second-day-oil-products.html)