Los Angeles gasoline weakened against futures after a government report showed regional stockpiles of the motor fuel at a three-month high.
The fuel declined after the Energy Information Administration said gasoline inventories on the U.S. West Coast, known as the PADD 5 region, rose 2.4 percent to 29.3 million barrels, the highest level since Aug. 16.
California-blend gasoline, or Carbob, in Los Angeles tumbled 6.5 cents to a discount of 2 cents a gallon against futures traded on the New York Mercantile Exchange at 2:50 p.m. East Coast time, data compiled by Bloomberg show.
Today’s drop follows two straight days of gains for Carbob after Tesoro Corp. (TSO) was said to extend work at the Carson section of its Southern California refinery and plan a January shutdown at the Wilmington plant. Retail gasoline in California climbed 0.3 cent to $3.566 a gallon, according to Heathrow, Florida-based AAA.
“News of some local refinery work has increased wholesale prices by about 15 cents in the last 10 days, indicating some possible future price increases at the pump,” Jeffrey Spring, a spokesman for the Automobile Club of Southern California, said in an e-mailed statement. “Thanksgiving travelers will still be paying less for gas than they did during the 2011 and 2012 holidays.”
The 3-2-1 crack spread of Alaska North Slope crude, Carbob in Los Angeles and state-grade diesel in Los Angeles, an indicator of refining profitability in the western U.S., narrowed 34 cents a barrel to $11.77 at 3:05 p.m. New York time, according to data compiled by Bloomberg.
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