Los Angeles Cash Gasoline Basis DN on Supply, Output Gains
OAKHURST, N.J. (DTN) --- Cash gasoline basis in Los Angeles weakened further
Thursday in limited trade, pressured by growing supply and higher production.
Federal data for the first week of June detailed a fourth straight weekly
gain in PADD V gasoline supplies, leaving stocks at 10-week high and more than
1.5 million bbl above the five year-average.
In its latest Weekly Fuels Report, the California Energy Commission reported
CARBOB output jumped nearly 7% to 6.956 million bbl in the week ended June 7,
the highest level since the first week of the year but 3% lower than the same
week in 2018.
In the southern part of the state, output increased for a second straight
week while higher in the north for the third time in four weeks.
At 5.780 million bbl, statewide supply of the fuel fell 279,000 bbl on the
week and was 849,000 bbl below the corresponding week last year while gasoline
blending components rose 349,000 bbl last week to 5.923 million bbl. CEC data
shows overall CARBOB and gasoline blending components supply nearing the high
end of the five-year range.
In the northern part of the state, CEC reported supplies CARBOB and blending
components edged lower last week but were in the high end of the range while in
the south they rose for a second week yet remained at the low end of the range.
In the L.A. basin, June CARBOB traded at futures parity and a 1cts futures
discount. The fuel was talked at a 4.5cts futures premium the day prior.
July CARBOB traded from a 5.5cts premium to August RBOB futures down to a
San Francisco Bay prompt CARBOB was offered 2cts below the MERC while
sources reported June CARB ULSD was reported at a 1cts futures discount.
In the basin, June CARB ULSD traded at a 3cts futures discount, 2cts weaker
than the previous trade day. Prompt ULSD for export out-of-state held at parity
to the state mandated fuel.
Sources said July CARB ULSD in L.A. traded a few times at 1cts discounts to
August ULSD futures.
CEC data showed production of CARB ULSD and ULSD for export out-of-state
increased in the first week of June in the basin, up for a second straight week
and well above the five-year average while supplies of the fuels were also
higher on the week.
Statewide, CEC reported CARB ULSD supply up 85,000 bbl to 1.996 million bbl
in the week profiled, a nine-week high.
Dawn Gallagher, 1.732.531.4451, email@example.com, www.dtn.com. (c)
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