Los Angeles Gasoline Declines to Seasonal Low Against Futures

Spot gasoline in Los Angeles slid to a five-day low against futures, widening its discount to equal the record for this time of year.

Phillips 66 (PSX)’s 139,000-barrel-a-day Los Angeles refinery isn’t performing planned maintenance, Rich Johnson, a spokesman at the company’s headquarters in Houston, said by e-mail. The plant reported a release in the Carson section of the complex yesterday, according to a notice to state regulators.

Tesoro Corp. (TSO)’s Los Angeles refinery has been performing unscheduled repairs on a unit since last week, according to Tina Barbee, a spokeswoman at the company’s headquarters in San Antonio. She didn’t immediately respond to e-mailed requests for comment on the status of the work today.

California-blend gasoline, or Carbob, in Los Angeles dropped 6 cents to a discount of 14.5 cents a gallon versus gasoline futures traded on the New York Mercantile Exchange at 4:06 p.m., according to data compiled by Bloomberg. That matches the level reached Aug. 6, which is the biggest discount for this time of year in records begun in 2008.

Prompt-delivery of the fuel in Los Angeles fell 2.16 cents to $2.7975 a gallon.

Carbob in San Francisco tumbled 7.5 cents versus futures to a discount of 17.5 cents a gallon, the lowest level in almost two weeks. Conventional gasoline in Portland, Oregon, a benchmark for the U.S. Pacific Northwest, weakened against futures for the first time in five days, losing 3 cents to a discount of 5 cents a gallon.

Portland Diesel

Low-sulfur diesel in Portland was unchanged against ultra-low-sulfur diesel futures on the Nymex at a discount of 2 cents a gallon. California-grade, or CARB, diesel in San Francisco was unchanged at a premium of 7.5 cents a gallon versus futures, and the fuel in Los Angeles held at a premium of 4 cents.

Retail gasoline in California fell 0.7 cent to average $3.892 a gallon, Heathrow, Florida-based AAA, the nation’s largest motoring organization, said today on its website.

The 3-2-1 crack spread of Alaska North Slope crude, Carbob in Los Angeles and CARB diesel in Los Angeles narrowed by $1.21 to $10.97 a barrel at 4:08 p.m. New York time. The spread, a rough indicator of refinery profitability, has declined 41 percent in the past month.

To contact the reporter on this story: Lynn Doan in San Francisco at ldoan6@bloomberg.net

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

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