Los Angeles Diesel Extends Four-Month High on Tight Supplies
Spot diesel in Los Angeles strengthened a third straight day to the highest level against futures in more than four months as Southern California refinery units conducted repairs, cutting fuel supplies.
BP Plc (BP/), Valero Energy Corp. (VLO:US) and Chevron Corp. (CVX:US) are doing work on production units at their plants in the Los Angeles area. Supplies of California-blend diesel, known as CARB diesel, dropped 9.2 percent to 1.8 million barrels last week, the lowest level since Aug. 24 and the smallest for the season since 2007, according to state Energy Commission data.
CARB diesel in Los Angeles gained 0.75 cent against heating oil futures traded on the New York Mercantile Exchange, to a premium of 14.75 cents a gallon at 1:20 p.m. East Coast time, data compiled by Bloomberg show. That’s the highest since Oct. 9.
The same fuel in San Francisco fell 2.25 cents versus futures to a premium of 12.75 cents a gallon. Tesoro Corp. (TSO:US)’s Golden Eagle refinery in Northern California restarted a hydrocracker last week after finishing repairs.
In Portland, Oregon, the premium for low-sulfur diesel against futures widened 0.25 cent to 7.75 cents a gallon, the highest level since November. Conventional, 84-octane gasoline there gained 1.5 cents against Nymex gasoline futures to a premium of 10.5 cents a gallon, the biggest gap since Oct. 15.
The discount for California-blend gasoline, or Carbob, in San Francisco was unchanged at 9 cents a gallon against gasoline futures. The same fuel in Los Angeles weakened 1 cent against futures to a premium of 9 cents a gallon.
The 3-2-1 refinery crack spread of Alaskan North Slope crude, Carbob in Los Angeles and CARB diesel in Los Angeles widened a second day, gaining 13.9 cents to $27.589 a barrel at 2:41 p.m. New York time.
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