Gasoline Prices Fall as Fuel Demand Satisfied

Gasoline fell on signs that refiners are producing more than enough fuel to satisfy rising U.S. demand as travelers take to the highways for the Fourth of July.

U.S. refineries last week produced gasoline at the fastest pace in seven months and fuel imports were at a record for a second consecutive week, the American Petroleum Institute said. The extra supplies came as U.S. demand rose to the highest level since August.

Gasoline for August delivery fell as much as 1.88 cents, or 2.4%, to 77.1 cents a gallon on the New York Mercantile Exchange. The futures, which represent wholesale markets, were up 6.8% from a year ago.

Demand for gasoline, as computed from figures in the institute’s report, rose 3.6% to 9.89 million barrels a day last week. Inventories fell 1.3 million barrels to 216.4 million in the week ended Friday. The decline was within the range of analysts’ expectations.