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Diesel in U.S. West Gains as Tankers Seen Exporting Fuel

Spot diesel in California strengthened against futures as at least six tankers were seen scheduled to load fuel along the U.S. West Coast for export.

Diesel’s discount narrowed as the tankers Overseas Athens and the Maersk Mikage, both chartered to load fuel in the region this month, headed for Los Angeles, IHS Inc. (IHS) and ship-fixture data compiled by Bloomberg today show. The FPMC 20 and the Citrus Express, also scheduled to load clean products off the West Coast, were bound for San Francisco.

California-grade, or CARB, diesel in Los Angeles strengthened 0.25 cent against ultra low sulfur diesel futures traded on the New York Mercantile Exchange to a discount of 6.5 cents a gallon at 4:02 p.m. New York time, data compiled by Bloomberg show. The same fuel in San Francisco advanced 2 cents to 4.5 cents a gallon under futures.

Retail diesel in California fell 0.7 cent to $4.103 a gallon, according to Heathrow, Florida-based AAA. Gasoline dropped 0.6 cent to $3.658 a gallon.

At least two tankers scheduled to load fuel for export, the Overseas Antigmar and the High Enterprise, were headed for Washington state, where Phillips 66 (PSX), BP Plc (BP/), Royal Dutch Shell Plc (RDSA) and Tesoro Corp. (TSO) run refineries.

Spot ULSD in Portland, Oregon, a benchmark for the U.S. Pacific Northwest, strengthened 0.25 cent versus futures to a discount of 5.25 cents a gallon. Conventional gasoline in Portland was unchanged relative to Nymex gasoline futures at a discount of 18 cents a gallon.

California-blend gasoline, or Carbob, in Los Angeles weakened 3 cents versus futures to a discount of 13 cents a gallon. Carbob in San Francisco was unchanged at 24 cents a gallon under futures.

The 3-2-1 crack spread, assuming two barrels of Carbob gasoline and one barrel of CARB diesel in Los Angeles is refined out of three barrels of Alaska North Slope crude, widened for the first time in a week, broadening $1.19 a barrel to $9.13 at 4:03 p.m. New York time, data compiled by Bloomberg show.

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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