Newspaper article THE JOURNAL RECORD

Gasoline Rally Helps Oil Futures Prices Advance

Newspaper article THE JOURNAL RECORD

Gasoline Rally Helps Oil Futures Prices Advance

Article excerpt

NEW YORK (AP) - Oil futures prices advanced Tuesday on a rally in gasoline contracts, bought by market speculators who correctly guessed an industry report would show dwindling U.S. stockpiles and make fuel more valuable.

``If you bought gasoline today, you did well,'' said Christopher Mahoney, an oil-futures broker at E.D.& F. Man International Futures Inc., a New York-based commodities trading company. ``Gasoline is on the comeback trail.''

On the New York Mercantile Exchange, the leading futures market for energy, the near-month delivery contract for wholesale unleaded regular gasoline snapped a three-day losing streak and rose to 70.48 cents a gallon, up from 69.70 cents a gallon Monday. Later-month delivery contracts also rose.

The rally in gasoline on the Mercantile Exchange spilled over into crude oil, where the near-month contract for the benchmark light sweet grade rose 14 cents a barrel to $19.76. At London's International Petroleum Exchange, the price of Brent crude, the key European grade, rose 14 cents to $18.39.

Among other contracts for refined products traded in New York, wholesale home heating oil for near-month delivery rose .34 cent a gallon to 56.80 cents, and natural gas rose .5 cent to $1.395 per 1,000 cubic feet.

There were no changes reported Tuesday in spot prices for crude oil by major buyers in Oklahoma.

Brokers said they based their buying strategy for gasoline futures partly on a hunch that a weekly report on energy stockpiles by the American Petroleum Institute, a trade group in Washington, would demonstrate the U.S. supply of gasoline is falling at a time when it should be rising, right before the summer driving season. …

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