California-blend gasoline fell against futures as stockpiles of the fuel grew after refineries in the state returned to service after maintenance shutdowns. Premiums in Portland, Oregon, retreated from record highs.
California-blend, or Carbob, gasoline in San Francisco weakened 4.75 cents to a premium of 19.25 cents a gallon versus gasoline futures traded on the New York Mercantile Exchange, according to data compiled by Bloomberg.
Los Angeles Carbob fell 4.75 cents to a premium of 13.25 cents a gallon. Both premiums are the smallest since May 22. The average retail price for regular gas in the Los Angeles area was $4.285 a gallon as of 6 a.m. local time, 4.7 cents less than last week, the Automobile Club of Southern California said.
“Prices continue to fall from the spike that occurred earlier this month, indicating that supply issues in California are being addressed or are at least not as bad as feared,” Jeffrey Spring, a spokesman for the Auto Club, said in a statement e-mailed from Los Angeles. “The gas-price drops have been smaller in recent days, so it’s uncertain how long the downward trend will continue.”
The California Energy Commission released a report yesterday showing that stocks of Carbob increased 12 percent last week from the previous week to 5.13 million barrels.
BP Plc returned to normal rates May 29 at its 266,000-barrel-a-day plant at Cherry Point, Washington’s largest refinery, according to a person familiar with operations at the plant. BP shut the refinery after a Feb. 17 fire and moved up a maintenance turnaround to coincide with repairs.
Conventional, 87-octane gasoline in Portland, Oregon, plunged 42 cents to a premium of 42.5 cents a gallon versus New York futures. The fuel rose to its highest-ever level of 91 cents above futures May 23.
Low-sulfur diesel in Portland weakened 3.5 cents to a 15-cent-a-gallon premium to New York heating oil futures.
California-blend, or CARB, diesel weakened 0.38 cent in Los Angeles to 5.50 cents above futures. In San Francisco it was unchanged at a premium of 7 cents.