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 
2cts premium.

   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, dawn.gallagher@dtn.com, www.dtn.com. (c) 
2019 DTN. All rights reserved.