Spot gasoline in Los Angeles tumbled against futures for the first time in four days as the fuel began trading for June delivery and a government report showed regional stockpiles jumped last week by the most since January.
Motor gasoline supplies on the West Coast increased by 957,000 barrels, or 3.7 percent, to 270.2 million in the week ended May 17, the Energy Information Administration, the Energy Department’s statistical arm, said today. That’s the biggest weekly rise since Jan. 4 and the highest level in five weeks.
The prompt-month contract for California-blend gasoline, or Carbob, in Los Angeles, which rolled into June today, weakened 4.5 cents versus July futures traded on the New York Mercantile Exchange to a premium of 5.5 cents a gallon at 3:58 p.m. New York time, data compiled by Bloomberg show. The fuel was previously trading against June Nymex futures, which settled 0.72 cent a gallon above the July contract today.
The outright spot price for Carbob for prompt delivery in Los Angeles dropped 7.86 cents to $2.8672 a gallon, the least in three weeks. Regular, unleaded gasoline at pumps in California gained for a third straight week to $4.048 a gallon, the EIA said May 20.
Exxon Mobil Corp.’s 150,000-barrel-a-day Torrance refinery reported flaring today related to a maintenance turnaround that includes work on catalytic hydrodesulfurization, sulfur recovery, crude, alkylation and coker units, Gesuina Paras, an Exxon spokeswoman in Torrance said.
The turnaround was scheduled to be completed next week, a person familiar with the work schedule said March 5.
Carbob gasoline in San Francisco, which also rolled into June, dropped 4.5 cents against futures to a premium of 11 cents, its lowest level in three days.
California-blend, or CARB, diesel in San Francisco weakened by 8 cents against ultra-low-sulfur diesel futures on the Nymex to a discount of 9 cents a gallon, the lowest level since January. CARB diesel in Los Angeles slipped against futures for a second day, losing 0.12 cent to a discount of 5.5 cents a gallon, the least since Dec. 10.
In Portland, Oregon, conventional, 84-octane gasoline weakened against futures for the eighth straight day, losing 1 cent to a premium of 16.5 cents a gallon, the lowest level in more than three weeks. The premium for low-sulfur diesel there shrank by 3.5 cents to 9.5 cents a gallon above futures.
The oil-products tanker NCC Reem arrived at BP Plc’s Cherry Point refinery today, IHS Inc. data show. The tanker was chartered by Phillips 66 to deliver oil products to the U.S. West Coast from South Korea, according to ship-fixture data compiled by Bloomberg.
The oil-products tanker Atlantic Graze was scheduled to arrive in Honolulu on May 31 after stopping in South Korea, and the Voge Dignity was traveling north off the California coast bound for Vancouver, IHS data show.
The 3-2-1 crack spread of Alaska North Slope crude, Carbob in Los Angeles and CARB diesel in Los Angeles narrowed for a second day, losing 87 cents to $15.79 a barrel at 4:24 p.m. New York time. The spread, a rough measure of refining margins, is down from this year’s high of $29.09 on Feb. 5.