California-blend gasoline in Los Angeles tumbled to the lowest level against futures in more than a month as refineries restored supply and few buyers were seen in the market.
Royal Dutch Shell Plc (RDSA) and Tesoro Corp. (TSO:US) finished planned maintenance at refineries in California last week, and BP Plc (BP/) resumed some production at the 266,000-barrel-a-day Cherry Point refinery in Washington.
“Quite a bit of unplanned maintenance on the West Coast seems to be over,” David Hackett, president of Stillwater Associates, an independent fuel consultant in Irvine, California, said by telephone yesterday. “Prices are coming down in California pretty much in line with national prices, and they’ve got a ways to fall.”
California-blend, or Carbob, gasoline in Los Angeles dropped 16.5 cents to a premium of 1 cent a gallon versus gasoline futures traded on the New York Mercantile Exchange at 12:55 p.m. East Coast time, according to data compiled by Bloomberg. That’s the largest drop in five days and the smallest premium since the fuel traded at a deficit on April 17.
San Francisco Carbob, which began trading for June delivery, fell 3.5 cents to an 11-cent-a-gallon premium to futures, the lowest since April 23.
California-blend, or CARB, diesel in Los Angeles, which began trading for June delivery yesterday, climbed 0.38 cent to 5.38 cents a gallon above Nymex heating oil futures. The same fuel in San Francisco, still trading for May, was unchanged at a 4.5-cent premium to futures.
Conventional, 87-octane gasoline in Portland, Oregon, slipped 0.5 cent to a premium of 51 cents a gallon versus gasoline futures. Low-sulfur diesel there dropped 5 cents to 20 cents a gallon above heating oil futures.
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