Los Angeles Gasoline Gains on July Trading Amid Supply Decline
California-blend gasoline in Los Angeles strengthened for a second day as trading rolled into July and after a report showed supplies of the motor fuel dropped 3.9 percent last week.
Prompt-delivery contracts for California-blend gasoline, or Carbob, in Los Angeles and San Francisco switched to July and are now trading against August gasoline futures on New York Mercantile Exchange. July Nymex futures were 9.7 cents a gallon above the August contract at 2:32 p.m. New York time.
Carbob inventories fell to 4.55 million barrels in the week ended June 15 from 4.74 million a week earlier, the state Energy Commission said yesterday in an e-mailed report. Production of the fuel dropped 2.8 percent to 6.52 million barrels, the state said.
The discount to August Nymex futures for Carbob in Los Angeles was 2 cents a gallon at 2:40 p.m. New York time compared with yesterday’s 15-cent-a-gallon discount to July, according to data compiled by Bloomberg. Prompt-delivery of the fuel slipped 0.09 cent to $2.4393 a gallon.
Carbob in San Francisco was 4 cents a gallon under August futures compared with a 17-cent discount to July futures yesterday.
California-blend, or CARB, diesel in Los Angeles, which rolled into July yesterday, was unchanged at a 4.13-cent premium over Nymex heating oil futures. San Francisco CARB diesel was unchanged at 3.75 cents a gallon above futures.
CARB inventories rose for the second week, increasing 6.7 percent to 2.36 million barrels last week, the state said.
The discount for conventional, 87-octane gasoline in Portland, Oregon, strengthened 10.5 cents to a discount of 11 cents a gallon. Low-sulfur diesel there rose a penny to 6.25 cents a gallon above heating oil futures.
Motor gasoline supplies in the U.S. West Coast rose for a fourth consecutive week, increasing 1.3 percent to 27.4 million barrels, the Energy Department said yesterday. Distillate fuel oil supplies in the region climbed 1.9 percent to 11.9 million barrels, the agency said.
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