Spot gasoline in Los Angeles declined against futures for the second straight day after a state report showed stockpiles of the motor fuel jumped last week to the highest level in more than a month.
California-blend gasoline, or Carbob, stockpiles surged 10 percent in the week ended May 17 to 4.93 million barrels, the most since April 12, the state Energy Commission said late yesterday. Production of the fuel gained 1.6 percent to 6.96 million barrels, the state said.
Carbob in Los Angeles dropped 1 cent to a premium of 4.5 cents a gallon versus futures traded on the New York Mercantile Exchange at 2:07 p.m., data compiled by Bloomberg show. Prompt-delivery fell 3.3 cents to $2.8342 a gallon, the lowest price in a month. Retail gasoline in the state slid to $4.05 a gallon, down 1.1 cents from a week ago, the Automobile Club of Southern California said.
“Drivers have seen prices at many stations drop back below $4 a gallon for regular unleaded in the past week,” Jeffrey Spring, a spokesman for the club in Santa Ana, California, said in an e-mailed statement. “About 2.5 million people are expected to drive to their Memorial Day getaways this weekend, and they’ll be paying about $4 less for a 15-gallon fill-up than they did prior to last year’s holiday.”
A maintenance turnaround at Exxon Mobil Corp. (XOM)’s 150,000-barrel-a-day Torrance refinery that includes work on the crude, alkylation and coker units was scheduled to be completed next week, a person familiar with the timeline said March 5.
Tesoro Corp. (TSO)’s 170,000-barrel-a-day Golden Eagle refinery in Northern California reported unit startups on May 18, notices to county regulators show. A power failure at the plant knocked units out of service on May 16.
Carbob gasoline in San Francisco weakened 1.5 cents against futures to a premium of 9.5 cents a gallon, a one-week low. The spread between San Francisco and Los Angeles Carbob narrowed 0.5 cent to 5 cents a gallon.
California-blend, or CARB, diesel in San Francisco, which rolled into June trading today, rose 1.5 cents versus July ultra-low-sulfur diesel futures on the Nymex to a discount of 7.5 cents a gallon. CARB diesel in Los Angeles slid 0.5 cent to 6 cents a gallon below futures, the lowest price since Dec. 10.
In Portland, Oregon, conventional, 84-octane gasoline weakened 0.5 cent against futures to a premium of 16 cents a gallon. The premium for low-sulfur diesel there was unchanged at 9.5 cents a gallon above ULSD futures.
Gasoline supplies on the U.S. West Coast gained 957,000 barrels, or 3.7 percent, to 270.2 million in the seven days ended May 17, the most in five weeks, the Energy Information Administration, the Energy Department’s statistical arm, said yesterday.
Portland gasoline’s premium to Los Angeles Carbob gained a second day, adding 0.5 cent to 11.5 cents a gallon.
The 3-2-1 crack spread of Alaska North Slope crude, Carbob in Los Angeles and CARB diesel in Los Angeles narrowed for a third day, losing 42 cents to $15.37 a barrel at 2:14 p.m. New York time. The spread, a rough measure of refining margins, is down 47 percent from this year’s high of $29.09 on Feb. 5.
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