Los Angeles Gasoline at Two-Month Low on Tesoro Deal, Supplies
California-blend gasoline in Los Angeles fell against futures for the second day after Tesoro Corp. (TSO) reached an agreement with union workers at the Golden Eagle refinery and U.S. West Coast gasoline supplies rose.
The United Steelworkers Local 5 at the 170,000-barrel-a-day Golden Eagle plant voted yesterday to accept a settlement offer, becoming the last of the company’s sites to agree on a deal and avert a strike. Tesoro had said the refinery, its largest, would become a terminal during a work stoppage until new personnel could be trained to operate it.
“We want to commend Local 5’s bargaining committee for their hard work in obtaining an agreement and to the membership for their solidarity,” Lynne Hancock, a spokeswoman for the United Steelworkers in Nashville, Tennessee, said in an e-mail yesterday.
California-blend gasoline, or Carbob, in Los Angeles tumbled 8.25 cents to 7 cents a gallon below gasoline futures traded on the New York Mercantile Exchange at 3:19 p.m. East Coast time, according to data compiled by Bloomberg. That’s the first time the fuel in Los Angeles has traded at a discount to futures since April 17 and its lowest level since April 11.
Gasoline supplies in the West Coast, known as the Padd 5 region, rose by the most since January in the week ended June 1, increasing by 4.7 percent to 25.9 million barrels, the Energy Department said yesterday. Supplies in California climbed for the second week, increasing 0.3 percent to 6.12 million barrels, the state Energy Commission said in a separate report.
San Francisco Carbob dropped 6.75 cents to a discount of 3.25 cents a gallon to futures, the lowest level since April 12.
California-blend, or CARB, diesel in San Francisco was unchanged at 6.5 cents a gallon above Nymex heating oil futures. The same fuel in Los Angeles rose 0.75 cent to a premium of 4 cents a gallon to futures.
CARB diesel supplies fell 11 percent to 1.78 million barrels, the state said. Supplies of the fuel in Northern California were the lowest for this time in at least five years, according to a summary of the report.
Shell’s Martinez refinery in Northern California shut a coker on May 30, according to a filing with county regulators.
Diesel in Portland, Oregon, a benchmark for the U.S. Northwest, was unchanged at 11 cents a gallon above futures. Conventional, 87-octane gasoline there tumbled 12 cents to a discount of 4 cents a gallon against gasoline futures, the weakest level since April 11.
Low-sulfur diesel inventories in the West Coast rose 11 percent to 10.7 million barrels, the Energy Department said.
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