California Gasoline Drops After West Coast Supply Gain
Gasoline in Los Angeles weakened against futures for the first time in seven days after California’s stockpiles of the fuel jumped 14 percent and U.S. West Coast supplies gained after 12 weeks of declines.
California-blend gasoline, or Carbob, inventories surged by 546,000 barrels to 4.56 million in the week ended May 3, the state Energy Commission’s website shows. Supplies reached a record low of 4.01 million barrels a week earlier.
Gasoline stockpiles on the U.S. West Coast advanced for the first time since Feb. 1, snapping the longest streak of declines on record. Supplies in the PADD 5 region gained 298,000 barrels to 26.2 million barrels last week, data from the U.S. Energy Information Administration, the Energy Department’s statistical arm, showed today.
Carbob in Los Angeles weakened 5.5 cents to 39 cents a gallon over gasoline futures traded on the New York Mercantile Exchange at 3:53 p.m., data compiled by Bloomberg show. The same fuel in San Francisco also dropped 5.5 cents to 31 cents a gallon above futures.
The 3-2-1 crack spread of Alaska North Slope crude, Carbob in Los Angeles and CARB diesel in Los Angeles narrowed for the first time in seven days, shrinking $1.89 to $24.41 a barrel. The spread, a rough measure of refining margins, reached a two-month high yesterday.
West Coast stockpiles climbed as refineries including Tesoro Corp. (TSO)’s Anacortes, Chevron Corp. (CVX)’s Richmond and Royal Dutch Shell Plc (RDSA)’s Martinez plants were starting units following repairs. Chevron’s 279,000-barrel-a-day El Segundo refinery, the largest in California, restarted equipment late last month after a two-month turnaround.
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