Los Angeles Cash Gasoline Basis, Prices End Session Lower
OAKHURST, N.J. (DTN) --- Cash gasoline basis in Los Angeles weakened
Wednesday in muted trade as June pipeline business winds down with spot prices
also pressured by further decline by New York Mercantile Exchange RBOB futures.
Benchmark oil futures settled lower again despite data from the Energy
Information Administration showing a larger-than-expected crude supply draw and
stronger products demand.
EIA reported crude supplies dropped 2.5 million bbl during the week-ended
June 16, above calls for a draw of 1.5 million bbl, while gasoline demand fell
a less-than-expected 578,000 bbl and distillates gained by a more-than-expected
1.1 million bbl while demand rose nearly 6% and 3%, respectively.
August West Texas Intermediate crude oil futures slid nearly $1 to $42.53
bbl settlement while the IntercontinentalExchange August Brent contract tumbled
$1.20 to $44.82 bbl settlement.
NYMEX July RBOB futures settled down 1.35cts at $1.4105 gallon and the
August contract settled 1.47cts lower at $1.4041 gallon. July ULSD futures
tumbled 3.01cts to $1.3648 gallon while August futures shed 3.03cts to $1.3719
EIA data showed PADD V gasoline supplies decreased 213,000 bbl last week to
29.209 million bbl and a 426,000 bbl drop in distillate stocks to 12.577
June CARBOB in the basin was pegged a 9.5cts futures premium, a loss of
nearly 3.0cts to $1.5055 gallon.
July CARB ULSD was talked at a 4.75cts premium to August ULSD futures,
0.5cts higher than the prior session. With the loss on the MERC, spot price
fell 2.53cts to $1.4194 gallon. Prompt ULSD for export out-of-state held at
parity to the state mandated fuel.
In the San Francisco Bay, prompt CAARB ULSD maintained a 4.0cts futures
premium, tracing the print down 3.01cts to $1.4048 gallon.
Prompt CARBOB in the Bay was talked at an 11.0cts premium to July RBOB
futures, down 1.35cts at $1.5205 gallon.
Trade sources pegged prompt suboctane in the Pacific Northwest at a 9.0cts
futures premium, little changed at $1.5005 gallon.
Dawn Gallagher, 1.732.531.4451, firstname.lastname@example.org, www.dtn.com. (c)
2017 DTN. All rights reserved.