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Nov. 2 (Bloomberg) -- California-blend diesel in Los Angeles extended the highest premium to futures in almost four years on low inventories of the fuel in the state and increased demand for exports from the West Coast.
The premium for CARB diesel in Los Angeles rose 6.5 cents to 37.5 cents a gallon above heating oil futures traded on the New York Mercantile Exchange at 1:57 p.m. East Coast time, according to data compiled by Bloomberg. That’s the largest premium for the fuel since Bloomberg began collecting the data on Nov. 27, 2007.
California-blend diesel stocks in the state fell 3.5 percent in the week ended Oct. 28 from a week earlier to 2.62 million barrels, the state Energy Commission said. Non- California diesel stocks jumped 24 percent to 1 million barrels and production rose 139 percent, the state said.
“West Coast diesel fuel prices are still firm due to cargoes being exported to Mexico, Chile and Japan,” Bob van der Valk, an independent fuel pricing analyst in Terry, Montana, said in an e-mail.
Twelve oil products tankers are either docked or in the area of Los Angeles, San Francisco and San Diego, according to AISLive data on Bloomberg.
California-blend gasoline in Los Angeles fell 2 cents to 33 cents a gallon over gasoline futures traded on the Nymex, the first decline for the fuel in seven days. Carbob in San Francisco fell 1.5 cents to 28.5 cents a gallon.
Carbob inventories in the state climbed 0.3 percent last week, according to the energy commission. Production of the fuel slipped 1.4 percent, the state said.
BP Plc, Tesoro Corp. and Chevron Corp. were said to be conducting work at their Southern California refineries.
The premium for conventional, 87-octane gasoline in Portland, Oregon, fell 0.5 cent to 20 cents above futures.
--Editors: Charlotte Porter, Richard Stubbe
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