Los Angeles Gasoline Falls to Two-Week Low After Supplies Rise
Spot gasoline in Los Angeles weakened to a two-week low against futures after the Energy Department said inventories of the motor fuel on the U.S. West Coast increased for the fourth time in five weeks.
Regional gasoline supplies rose 2.7 percent to 27.9 million barrels in the week ended June 29, the report showed. Gasoline inventories in California gained 8.4 percent to 6.1 million barrels after refineries boosted non-California-blend gasoline stocks, for use outside the state, by 79 percent, the state Energy Commission said.
California-blend, or Carbob, gasoline in Los Angeles fell 4.25 cents to a discount of 1.75 cents a gallon against gasoline futures traded on the New York Mercantile Exchange at 4:01 p.m. East Coast time, according to data compiled by Bloomberg. That’s the first time the fuel has traded below futures since June 21.
Exxon Mobil Corp. (XOM) is nearing the end of a 40-day maintenance turnaround at the 150,000-barrel-a-day Torrance refinery that was scheduled to begin around May 19, two people with knowledge of the timing said May 11. The refinery plans to flare gases through July 9, Exxon said in a regulatory notice.
Carbob in San Francisco dropped 4.75 cents to 3.75 cents a gallon below futures, also its lowest level since June 21.
Refineries in California cut Carbob supplies 3.8 percent last week to 4.62 million barrels and increased non-Carbob inventories to 1.48 million barrels from 828,000 a week earlier, the state Energy Commission said in an e-mailed report.
California-blend diesel, or CARB diesel, in Los Angeles fell 0.12 cent to a premium of 4.63 cents a gallon against Nymex heating oil futures. The same fuel in San Francisco dropped 1 cent to parity with futures.
CARB diesel supplies climbed 1.6 percent last week to 2.17 million barrels, the state Energy Commission said. Non-CARB diesel inventories, for use outside the state, dropped 12 percent to 1 million barrels, the state said.
Conventional, 87-octane gasoline in Portland, Oregon, weakened 2 cents to a premium of 1 cent a gallon against gasoline futures. Low-sulfur diesel there was unchanged at an 8- cent-a-gallon premium to heating oil futures.
Low-sulfur diesel fuel inventories in the West Coast slipped 2.5 percent to 10.5 million barrels last week, the Energy Department said.
To contact the reporter on this story: Lynn Doan in San Francisco at firstname.lastname@example.org
To contact the editor responsible for this story: Dan Stets at email@example.com