Spot Diesel in U.S. West Gains as Tankers Load Fuel for ExportLynn Doan
California spot diesel gained to the highest level against futures in a week as two tankers were scheduled to load fuel off the U.S. West Coast for export to Latin America.
The clean-products tanker Nord Steady, scheduled to arrive in Anacortes, Washington, tomorrow, was chartered by Royal Dutch Shell Plc to carry fuel to Chile, ship-fixture data compiled by Bloomberg show. The Anja Kirk, also bound for Anacortes, was scheduled to load product for delivery to Mexico, the data show.
The discount for California-grade, or CARB, diesel in Los Angeles narrowed 1.5 cents versus ultra-low-sulfur diesel futures traded on the New York Mercantile Exchange to 1.75 cents a gallon, the smallest gap since Oct. 14, according to data compiled by Bloomberg at 3:48 p.m. New York time. Prompt-delivery of the fuel slipped 0.83 cent to $2.8814 a gallon.
The same fuel in San Francisco strengthened 1 cent to a discount of 3.25 cents a gallon against futures.
Diesel in Portland, Oregon, a benchmark for the U.S. Pacific Northwest, was unchanged at 18.5 cents a gallon above futures, matching yesterday’s biggest premium since May.
Conventional gasoline in Portland widened its discount to Nymex gasoline futures by 1 cent to 11.5 cents a gallon, the lowest level since August.
California-blend gasoline, or Carbob, in San Francisco slid 5.5 cents to a premium of 1.5 cents a gallon against futures. The same fuel in Los Angeles weakened 4.25 cents against futures to a premium of 8.75 cents a gallon, a seven-week low.
Exxon Mobil Corp. said yesterday that its 150,000-barrel-a-day Torrance refinery near Los Angeles was operating as usual after a breakdown last week in a process unit. Tesoro Corp.’s 170,000-barrel-a-day Golden Eagle plant in Northern California also reported a unit startup yesterday after an upset Oct. 20, according to regulatory filings.