Bloomberg News

Los Angeles Diesel Jumps as Stockpiles Decline to Two-Month Low

July 03, 2013

Spot diesel in Los Angeles advanced to the highest level against futures in almost two weeks after distillate stockpiles on the U.S. West Coast tumbled to the lowest level since May 3.

Distillate fuel oil supplies on the West Coast, known as the PADD 5 region, dropped by 1.09 million barrels, or 8.4 percent, to 11.9 million in the week ended June 28, according to data compiled by the Energy Information Administration, the Energy Department’s statistical arm.

Exxon Mobil Corp. (XOM:US)’s 150,000-barrel-a-day Torrance refinery is undergoing repairs that may cause the plant to flare gases through tomorrow, Gesuina Paras, a company spokeswoman at the plant, said by e-mail yesterday. Three tankers, the Torm Arawa, Alpine Eternity and Isola Corallo, are scheduled to load fuel on the West Coast for export to South and Central America.

California-blend, or CARB, diesel in Los Angeles advanced 2.5 cents to a premium of 4 cents a gallon versus ultra-low-sulfur diesel futures traded on the New York Mercantile Exchange at 2:21 p.m., the highest level since June 20, data compiled by Bloomberg show. Prompt-delivery jumped 7.47 cents to $2.9911 a gallon.

The same fuel in San Francisco climbed 0.25 cent against futures to a premium of 2.5 cents a gallon. CARB diesel in San Francisco weakened 2.25 cents versus the fuel in Los Angeles to a discount of 1.5 cents a gallon.

Carbob Prices

California-blend gasoline, or Carbob, in Los Angeles climbed 4.25 cents versus gasoline futures traded on the Nymex to a premium of 17 cents a gallon, a one-week high. Prompt-delivery jumped 9.65 cents to $3.0073 a gallon.

Gasoline stockpiles on the West Coast fell for the first time in five weeks, declining 810,000 barrels, or 2.8 percent, to 28.4 million, the EIA said.

Carbob in San Francisco strengthened 3.25 cents against futures to a premium of 14 cents a gallon. The discount for the fuel in San Francisco versus Los Angeles widened 1 cent to 3 cents a gallon, the weakest in four days.

Valero Energy Corp. (VLO:US)’s 170,000-barrel-a-day Benicia refinery near San Francisco returned the fluid catalytic cracker to planned rates after a “brief outage” on June 29, Bill Day, a spokesman at the company’s headquarters in San Antonio, said by e-mail today.

Tesoro’s 170,000-barrel-a-day Golden Eagle plant in Northern California was running normally after a “major unit” startup yesterday, Tina Barbee, a spokeswoman at the company’s San Antonio headquarters, said by e-mail today. The refinery reported an “unexpected emergency shutdown” of a unit June 30.

Retail Gasoline

Retail gasoline in California slipped 0.6 cent to $3.988 a gallon, Heathrow, Florida-based AAA, the nation’s largest motoring organization, said today on its website. Prices are up from $3.741 a year ago.

The premium for spot, conventional gasoline in Portland, Oregon, widened 2 cents to 18 cents a gallon versus futures. Portland gasoline weakened 2.25 cents against Los Angeles Carbob to a premium of 1 cent a gallon, the smallest differential in four days.

The 3-2-1 crack spread of Alaska North Slope crude, Carbob in Los Angeles and CARB diesel in Los Angeles widened a third day, jumping $2.11 to $15.99 a barrel at 3:47 p.m. New York time.

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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Companies Mentioned

  • XOM
    (Exxon Mobil Corp)
    • $93.64 USD
    • 2.48
    • 2.65%
  • VLO
    (Valero Energy Corp)
    • $48.88 USD
    • 1.81
    • 3.7%
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