LA CARBOB Basis Up on Supply Fears


   
Kristina Davis
DTN Refined Fuels Market Reporter

   MIAMI, FL (DTN) -- Prompt Los Angeles CARBOB regular basis strengthened 
Monday (5/18), trading at a 30cts premium to NYMEX RBOB futures, on concerns 
over near-term supplies despite federal data showing back-to-back weekly builds 
in gasoline stockpiles.

   San Francisco CARBOB, meanwhile, saw no confirmed trades on the day, 
according to West Coast gasoline traders.

   Los Angeles CARBOB differentials rose 3cts from Friday's last confirmed 
trade that pegged the product at a premium of 27cts gallon then to June NYMEX 
RBOB.

   Motor gasoline inventories in the PADD 5 region increased by 100,000 bbl to 
28.3 million bbl during the week ended May 8, after rising the prior week, the 
Energy Information Administration said. Year-on-year, gasoline stocks in the 
region were 1.7 million bbl higher.

   Despite the consecutive stockpile builds, traders said the market was 
looking beyond near-term supply to concerns over the Middle East conflict and 
how that could seize up the market. Long-term refinery capacity constraints in 
the West Coast were also pushing domestic gasoline premiums higher.  

    




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