Gasoline in Los Angeles Weakens for Third Day to Six-Week Low
Spot gasoline in Los Angeles declined against futures for a third day to the lowest level in more than six weeks as refineries restored production after repairs.
California-blend gasoline, or Carbob, in Los Angeles slipped 1.5 cents to a premium of 3 cents a gallon versus futures traded on the New York Mercantile Exchange at 4:19 p.m., the lowest level since April 8, according to data compiled by Bloomberg. Prompt-delivery fell 0.5 cent to $2.8581 a gallon.
Retail gasoline in the state slipped 0.6 cent to $4.044 a gallon, Heathrow, Florida-based AAA, the nation’s largest motoring organization, said today on its website.
Carbob stockpiles surged to a one-month high in the week ended May 17, jumping 10 percent to 4.93 million barrels, the state Energy Commission said May 22.
BP Plc (BP/)’s 266,000-barrel-a-day Carson refinery near Los Angeles finished repairs on the No. 4 crude unit over the weekend and the equipment is back to normal operations, a person familiar with operations there said today.
Exxon Mobil Corp. (XOM)’s 150,000-barrel-a-day Torrance refinery is scheduled to finish a maintenance turnaround next week, according to a person with knowledge of the timeline.
The tanker Stolt Perseverance, traveling north of Hawaii, may be carrying fuel to Long Beach, California. IHS Inc. (IHS) data show the oil-products vessel, scheduled to arrive in Long Beach on May 28, last stopped in Ulsan, South Korea, which was the third-largest gasoline exporter to the West Coast last year.
The U.S. West imported 1.25 million barrels of gasoline in 2012, less than any other coastal region of the U.S., data compiled by the Energy Information Administration show. Canada and Spain were the first- and second-largest gasoline exporters to the West last year, respectively, said the EIA, the Energy Department’s statistical arm.
Carbob gasoline in San Francisco weakened 3.5 cents against futures to a premium of 6 cents a gallon versus futures, the lowest level since April 8. The spread between San Francisco and Los Angeles Carbob was unchanged at 5 cents a gallon.
California-blend, or CARB, diesel in San Francisco, which rolled into June trading yesterday, was unchanged against ultra-low-sulfur diesel futures on the Nymex at a discount of 7.5 cents a gallon. CARB diesel in Los Angeles was steady at 6 cents a gallon below futures, the lowest level since Dec. 10.
In Portland, Oregon, conventional, 84-octane gasoline weakened 1.5 cents against futures to a premium of 14.5 cents a gallon. The premium for low-sulfur diesel there was unchanged at 9.5 cents a gallon above ULSD futures.
Portland gasoline’s premium to Los Angeles Carbob held at 11.5 cents a gallon.
The 3-2-1 crack spread of Alaska North Slope crude, Carbob in Los Angeles and CARB diesel in Los Angeles widened for the first time in four days, gaining 0.5 cent to $15.56 a barrel at 4:02 p.m. New York time. The spread, a rough measure of refining margins, is down 47 percent from this year’s high of $29.09 on Feb. 5.
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