Spot gasoline in Los Angeles gained against futures for the first time in seven days after trading on the prompt-month contract rolled into September delivery.
The discount for California-blend gasoline, or Carbob, in Los Angeles narrowed 21.75 cents against futures traded on the New York Mercantile Exchange to 3.25 cents a gallon at 4:08 p.m., data compiled by Bloomberg show. Prompt delivery jumped 12.34 cents to $2.8382 a gallon, a one-week high.
The delivery month for spot Carbob in Los Angeles rolled into September today and is now trading against October Nymex gasoline futures, which settled more than 13 cents a gallon below the September contract today.
The discount for Los Angeles Carbob widened to a record against September futures yesterday after supplies of the fuel climbed to 5.81 million barrels last week, the most for the period since at least 2004, according to data compiled by the California Energy Commission.
Retail gasoline in California fell 1.2 cents to average $3.819 a gallon, Heathrow, Florida-based AAA, the nation’s largest motoring organization, said on its website.
Carbob in San Francisco widened its discount to futures by 2 cents to 3.5 cents a gallon. The contract in the Northern California city rolled into September yesterday.
Conventional gasoline in Portland, Oregon, a benchmark for the U.S. Pacific Northwest, strengthened 4 cents against futures to a discount of 13 cents a gallon.
The 3-2-1 crack spread of Alaska North Slope crude, Carbob in Los Angeles and California-grade diesel in Los Angeles, widened for the first time in three days, broadening $2.69 to $11.50 a barrel at 4:12 p.m. New York time. The spread, a rough indicator of refinery profitability, shrunk to a 2013 low yesterday.