Indicating improvements in the economy and better prospects for fuel demand, gasoline advanced after reports showed a drop in jobless claims and growth for U.S. service industries.
Gasoline outperformed crude and heating oil as the Labor Department reported a drop in first-time filings for jobless benefits and continuing claims. Indicating the recovery is broadening service industries in the U.S. expanded in January at the fastest pace since August 2005
Gasoline for March delivery added 0.49 cent to settle at $2.5034 a gallon on the New York Mercantile Exchange. The gasoline crack spread, based on March contracts, widened 52 cents to $14.60 a barrel.
The Institute for Supply Management’s index of non- manufacturing businesses rose to 59.4, exceeding the median forecast in a Bloomberg News survey, after December’s 57.1. Readings above 50 signal expansion in the gauge that covers about 90 percent of the economy. Orders were the highest in seven years, while companies showed more confidence to hire.
Applications for jobless benefits decreased by 42,000 to 415,000 in the week ended Jan. 29. Economists forecast claims would fall to 420,000, according to the median estimate in a Bloomberg News survey.
Heating oil for March delivery sank 1.33 cents, or 0.5 percent, to settle at $2.7674, after touching $2.804, the highest level for the front-month contract since October 2008. The heating oil crack spread, based on March contracts, and narrowed 24 cents to $25.69 a barrel.
Crude oil for March delivery dropped 32 cents to settle at $90.54 a barrel
Regular gasoline at the pump, averaged nationwide, gained 0.8 cent to $3.116 a gallon yesterday
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