Gasoline on the spot market in San Francisco fell to the lowest level against futures in four months as supplies of the fuel on the West Coast rose.
Gasoline inventories in PADD 5 grew by 818,000 barrels to 29.1 million, the highest level since June 21, Energy Information Administration data show. It was the first supply increase in three weeks.
California-blend gasoline, or Carbob, in San Francisco weakened by 20.5 cents to a discount of 16 cents a gallon to futures on the New York Mercantile Exchange at 3:53 p.m. East Coast time, according to data compiled by Bloomberg. It’s the lowest level since March 12.
The fuel in Los Angeles weakened by 17.5 cents to a 6-cent discount, the lowest level since March 21.
“The price tumble is in reaction to building stock levels,” said Dave Hackett, president of energy consulting firm Stillwater Associates in Irvine, California.
California-blend diesel in San Francisco weakened by 2 cents to a premium of 1.5 cents a gallon above ultra-low-sulfur diesel futures on the Nymex. The fuel in Los Angeles weakened by 2.63 cents to a 1-cent premium to futures.
Conventional, 84-octane gasoline in Portland, Oregon, weakened by 6 cents to a premium of 6 cents a gallon above Nymex futures. Kinder Morgan Energy Partners LP expects to resume operations of its Trans Mountain pipeline at full capacity after repairs on the line are finished at the end of the month.
The line, which can carry as much as 300,000 barrels of crude and products a day from Edmonton, Alberta, to Vancouver and the Puget Sound area in Washington state, has been running at 80 percent of its operating pressure since restarting following a June 26 spill.
Low-sulfur diesel in Portland weakened by 1 cent to 2.5 cents a gallon below ULSD futures on the Nymex.