California Gasoline Slips After Inventories Gain a Second Week
Spot gasoline in California weakened against futures for the first time this week after the Energy Department said regional inventories of the motor fuel increased last week to the highest level since April.
Gasoline supplies in the U.S. West Coast, known as the Padd 5 region, climbed for a second week, rising by 68,000 barrels, or 0.2 percent, to 27.9 million in the week ended July 6, the Energy Department said. That’s the highest inventory level in the West Coast since April 27.
California-blend, or Carbob, gasoline in Los Angeles dropped 2 cents to 1 cent a gallon above gasoline futures traded on the New York Mercantile Exchange at 2:02 p.m. East Coast time, according to data compiled by Bloomberg.
The fuel rose to a one-week high yesterday after Tesoro Corp. (TSO)’s Los Angeles refinery was said to shut coker and alkylation units and Exxon Mobil Corp. (XOM)’s Torrance plant reported a unit breakdown.
Carbob in San Francisco fell 2.25 cents to a discount of 2.25 cents a gallon against Nymex gasoline futures.
California supplies of Carbob rose 195,000 barrels, or 4.2 percent, to 4.82 million last week, the state Energy Commission said in an e-mailed report. Production of the fuel jumped 16 percent to 7.13 million barrels, the highest level for that week in at least 10 years, the commission said.
Inventories of California-blend diesel, or CARB diesel, fell 91,000 barrels, or 4.2 percent, to 2.08 million, according to the state.
CARB diesel in Los Angeles slipped 0.13 cent to 4.5 cents a gallon above Nymex heating oil futures. The same fuel in San Francisco weakened 1 cent against futures to a discount of 2 cents a gallon, the lowest level since Feb. 2.
Distillate fuel oil inventories in the West Coast jumped 1.06 million barrels, or 9.3 percent, to 12.4 million last week, the highest level since April 6, the Energy Department said.
Conventional, 87-octane gasoline in Portland, Oregon, gained for a third day, increasing 3.5 cents to a discount of 0.5 cent a gallon against gasoline futures. Low-sulfur diesel in Portland advanced 2 cents to an 11-cent-a-gallon premium versus heating oil futures.
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