Los Angeles Gasoline Drops to Four-Month Low on High Production
Spot gasoline in Los Angeles tumbled to the lowest level in four months as production in the state jumped to a eight-year seasonal high.
California-blend gasoline, or Carbob, production jumped 5.3 percent in the week ended July 12 to 7 million barrels, the most for the period since 2005, according to data compiled by the California Energy Commission. Valero Energy Corp. (VLO)’s Wilmington refinery returned its fluid catalytic cracker and alkylation unit to full rates this week after repairs.
Spot Carbob in Los Angeles declined 6 cents versus gasoline futures traded on the New York Mercantile Exchange to a discount of 12 cents a gallon, according to data compiled by Bloomberg at 3:49 p.m. New York time. That’s the lowest level since March 20.
Carbob in San Francisco also weakened 0.5 cent against futures to a discount of 17.5 cents a gallon.
Conventional gasoline in Portland also fell versus futures, dropping 4 cents to a premium of 4 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 the third straight day, shrinking 50 cents a barrel to $14.89. The spread, an approximate measure of refining profits, is at the lowest level in more than two weeks.
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