Los Angeles Jet Fuel Hits 7-Month High as Tankers Seen Exporting

Jet fuel in Los Angeles and gasoline in San Francisco gained as at least three tankers were seen heading to California to export refined products.

The Isola Celeste, traveling in San Francisco Bay, was scheduled to load fuel along the U.S. West Coast for export to Latin America, ship-fixture data compiled by Bloomberg show. The Torm Amalie, due in San Francisco on Dec. 5, has also been chartered to carry a cargo from the region. The Nord Fast is expected to arrive in San Francisco on Dec. 10.

Jet fuel at the Los Angeles trading hub gained 3.25 cents to parity with ultra low sulfur diesel futures traded on the New York Mercantile Exchange at 4:08 p.m. East Coast time, the highest level since April 17, data compiled by Bloomberg show.

The discount for California-blend gasoline, or Carbob, in San Francisco versus gasoline futures traded on the Nymex narrowed for the first time in three days, shrinking 0.5 cent to 14 cents a gallon at 4:08 p.m. East Coast time. The same fuel in Los Angeles was unchanged at 2 cents below futures.

Conventional gasoline in Portland, Oregon, a benchmark for the U.S. Pacific Northwest, advanced for the first time in seven days, climbing 2 cents to a discount of 17.5 cents.

The Anja Kirk, moored in Anacortes, Washington, near refineries operated by Tesoro Corp. (TSO) and Royal Dutch Shell Plc (RDSA), was scheduled to load fuel along the West Coast for export to Chile.

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., widened 39 cents a barrel to $8.18 after dropping to the lowest level in almost a year on Nov. 29, according to data compiled by Bloomberg at 4:13 p.m. New York time.

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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