Los Angeles Gasoline Weakens as Prices Near $4 Weaken DemandEliot Caroom
Spot gasoline in Los Angeles weakened against futures with retail prices near $4 a gallon and regional stocks at the highest seasonal level since 2011.
California inventories of Carbob stood at 5.58 million barrels for the week ended Aug. 2, the state said this week.
Spot Carbob in Los Angeles fell 6 cents versus gasoline futures traded on the New York Mercantile Exchange to a discount of 11.5 cents a gallon, according to data compiled by Bloomberg at 4:08 p.m. New York time.
“Gasoline prices have been high and people eventually will react to that,” said David Hackett, the president of independent fuel consultant Stillwater Associates in Irvine, California. “There is some discretionary gasoline out there, that’s starting to take its toll, $4 gas is starting to add up.”
Carbob in San Francisco also weakened 5.5 cents versus futures to a discount of 10 cents a gallon.
Retail gasoline in California fell 1.2 cents to $3.92 a gallon, Heathrow, Florida-based AAA, the nation’s largest motoring organization, said today on its website.
California-grade, or CARB, diesel in Los Angeles was unchanged against ultra-low-sulfur diesel futures on the Nymex at a premium of 4 cents a gallon. The same fuel in San Francisco rose 2 cents to 4.5 cents a gallon over futures.
Low-sulfur diesel in Portland, Oregon, weakened by 2.5 cents to a discount of 2 cents a gallon to futures. Conventional gasoline in Portland rose 1 cent against gasoline futures to a discount of 2.5 cents a gallon.
The 3-2-1 crack spread of Alaska North Slope crude, Carbob in Los Angeles and CARB diesel in Los Angeles fell $2.33 to $10.71 a barrel.