Spot gasoline in Los Angeles advanced by the most in almost two months after the state Energy Commission said production of the fuel tumbled last week.
California-blend gasoline, or Carbob, output dropped 9.1 percent to 6.19 million barrels in the week ended Dec. 14, the lowest level since Nov. 2, data posted on the Energy Commission’s website show. Crude-oil refinery input slipped for the third week to 10.4 million barrels, the least in a month, the state said.
Gasoline supplies on the U.S. West Coast, known as the Padd 5 region, fell for the first time in four weeks, declining by 594,000 barrels to 32.6 million, the Energy Department said.
The discount for Carbob in Los Angeles to gasoline futures traded on the New York Mercantile Exchange shrank by 8 cents to 10 cents a gallon versus as of 4:03 p.m. New York time, data compiled by Bloomberg show. That’s the biggest single-day increase for the fuel in Los Angeles since Oct. 29.
Carbob in San Francisco strengthened 3.5 cents to a discount of 20 cents a gallon against futures, the highest level since Dec. 10.
California-grade, or CARB, diesel in Los Angeles moved to a 2.5-cent-a-gallon premium to Nymex heating oil futures from a 1-cent discount yesterday. The fuel in San Francisco was unchanged at a discount of 2 cents a gallon versus futures.
CARB diesel supplies dropped 7.3 percent to 2.93 million barrels last week, the state said. Output of the fuel also tumbled 32 percent to 1.44 million barrels, the lowest level since April. Regional inventories of distillate fuel oil slipped 0.1 percent to 14.2 million barrels, the Energy Department said.
In Portland, Oregon, conventional 84 sub-octane gasoline to be blended with ethanol strengthened by 2 cents to a 10-cent discount to gasoline futures. Low-sulfur diesel in Portland’s discount to heating oil futures narrowed by 1.5 cents to 2.5 cents a gallon.