Bloomberg News

Los Angeles Diesel Strengthens to Nine-Day High After Stock Drop

December 14, 2011

Dec. 14 (Bloomberg) -- California-blend diesel in Los Angeles strengthened to the highest level against futures in nine days after the state Energy Commission said inventories of the fuel fell 8 percent last week.

California-blend diesel, known as CARB diesel, in Los Angeles climbed 0.25 cent to a discount of 1.88 cents to heating oil futures traded on the New York Mercantile Exchange at 4:14 p.m. New York time, according to data compiled by Bloomberg. The same fuel in San Francisco was unchanged at a discount of 2.5 cents to futures.

CARB diesel stocks dropped 8 percent, or 211,000 barrels, to 2.43 million in the week ended Dec. 9, the state Energy Commission said. That’s the lowest inventory level for the fuel in three weeks.

California-blend gasoline, or Carbob, in Los Angeles fell 4.5 cents to a premium of 4 cents a gallon against gasoline futures on the Nymex after Exxon Mobil Corp. said the Torrance refinery in Southern California was recovering from a power failure.

“We do not anticipate any impact to production and Exxon Mobil expects to meet all its contractual commitments,” Barbara Burgett, an Exxon spokeswoman at the refinery, said in an e-mail yesterday.

Carbob in San Francisco slipped 3 cents to a premium of 1.5 cents versus futures.

Conventional, 87-octane gasoline in Portland, Oregon, fell 1.25 cents to a discount of 3.25 cents to futures.

--Editors: David Marino, Bill Banker

To contact the reporter on this story: Lynn Doan in San Francisco at ldoan6@bloomberg.net

To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net


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