Los Angeles Gasoline Tumbles After Supplies Rise to 10-Year High
Spot gasoline in Los Angeles dropped to a four-month low against futures as oil refineries boosted production and supplies of the motor fuel in the region jumped to the highest level for this season in 10 years.
Gasoline stockpiles on the U.S. West Coast, known as the PADD 5 region, increased 3.6 percent to 30.6 million barrels last week, the highest level for that period since 2001, Energy Department data show. California-blend gasoline, or Carbob, supplies were at the highest for last week in four years, the state Energy Commission said.
Carbob in Los Angeles slid 11.5 cents to a discount of 4.25 cents a gallon against futures traded on the New York Mercantile Exchange at 4:20 p.m. New York time, the lowest level since July 20, according to data compiled by Bloomberg. The same fuel in San Francisco dropped 10.25 cents to 14.25 cents a gallon under futures.
Tesoro Corp. (TSO) said Nov. 26 that its Los Angeles area refinery started a new vacuum tower that’s expected to increase the plant’s gasoline, diesel and jet fuel production. Phillips 66 (PSX) said Nov. 26 that its own refinery near Los Angeles had finished planned maintenance.
California-grade, or CARB, diesel in Los Angeles fell 2.25 cents to 0.75 cent a gallon over Nymex heating oil futures. The same fuel in San Francisco was unchanged at 2 cents a gallon below futures.
Chevron Corp. (CVX) repaired a pipeline at the 240,000-barrel-a- day Richmond refinery near San Francisco that was shut Nov. 24 after a leak, Derek Jansen, a company spokesman in Richmond, said by e-mail today.
Royal Dutch Shell Plc (RDSA) reduced feed to a unit at the Martinez refinery in Northern California after a release on Nov. 24, Kimberly Windon, a Shell spokeswoman in Houston, said by e- mail today. She declined to provide the status of the unit.
Conventional 84 sub-octane gasoline to be blended with ethanol in Portland, Oregon, jumped 7.5 cents to a discount of 13 cents a gallon against gasoline futures, its highest level since Nov. 14. Low-sulfur diesel there slipped 1 cent to 5.5 cents a gallon over heating oil futures.
BP Plc (BP/)’s 234,000-barrel-a-day Cherry Point refinery in Washington state released sulfur dioxide Nov. 27, a filing with the National Response Center shows.
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