California Gasoline Climbs With Inventories Near Seasonal Low

Spot gasoline in Los Angeles gained as inventories hovered near a 10-year seasonal low and after Tesoro Corp. (TSO) announced flaring for the next week at its Carson refinery, which was said to be planning a coker shutdown.

Total gasoline inventories in the U.S. West rose 176,000 barrels last week to 27 million, 7.7 percent below the seasonal average, data released today by the Energy Information Administration show.

Tesoro announced flaring in the coming week at the 266,000-barrel-a-day Carson plant, the second largest in California, where the company planned to repair the coker and the mid-barrel unit in the first week of June, according to two people with knowledge of the schedule. Cokers use thermal processing to convert heavy streams into products such as naphtha and heating oil.

California-blend gasoline, or Carbob, in Los Angeles gained 2.5 cents to 6.75 cents a gallon above Nymex gasoline futures, according to data compiled by Bloomberg at 4:07 p.m. New York time. Carbob in San Francisco strengthened 2.75 cents to a premium of 8.5 cents a gallon.

California-blend, or CARB, diesel in San Francisco gained 3 cents to a 1 cent-a-gallon premium against ultra-low-sulfur diesel futures. The fuel in Los Angeles rose 0.5 cent to a premium of 3 cents a gallon.

Conventional gasoline in Portland, Oregon, was unchanged at parity versus futures. Low-sulfur diesel there gained 1 cent against ULSD futures to a discount of 8 cents a gallon.

The 3-2-1 crack spread of Alaska North Slope crude, Carbob in Los Angeles and CARB diesel in Los Angeles widened, gained 34 cents to $20.54 a barrel at 4:09 p.m.

To contact the reporter on this story: Eliot Caroom in New York at ecaroom@bloomberg.net

To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net

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