West Coast Spot Gasoline Prices DN with RBOB Futures Fall
OAKHURST, N.J. (DTN) --- West Coast spot gasoline prices declined Wednesday
afternoon, mostly pressured by the near 2.0cts drop by New York Mercantile
Exchange RBOB futures. A dearth of buying interest in the Pacific Northwest
absent the recent refiner buyer again weighed on cash gasoline basis in the
Sources said prompt suboctane in the Pacific Northwest was indexed at
futures parity. This compares with a 2.5cts futures premium the prior session.
Spot price fell nearly 4.5cts on the day to $1.4204 gallon.
Premium suboctane was indexed at a 24.5cts regrade to the regular suboctane,
a drop of 5.44cts to $1.6554 gallon.
In the Los Angeles basin, prompt CARBOB was talked 9.0cts by 12.0cts over
the January RBOB contract, a loss of about 1.5cts to $1.5254 gallon.
January CARBOB in L.A. was indexed at a 6.5cts premium to February RBOB
futures, down 0.50cts in basis.
San Francisco Bay December CARBOB maintained a 3.0cts discount to the L.A.
value, down 1.44cts to $1.4954 gallon.
Energy Information Administration data released midmorning showed PADD V
gasoline supplies increased for a fourth consecutive week, rising 612,000 bbl
in the week-ended Dec. 7 to 28.341 million bbl, the highest level in 12 weeks.
Still, stocks are 2.402 million bbl lower than the same week in 2017.
Agency data indicated PADD V distillate stocks increased for a fourth
straight week, up 248,000 bbl to 13.211 million bbl, the highest level since
the week-ended April 20 and about 300,000 bbl more than stocks on-hand a year
Sources reported December CARBOB in the basin at a 1.25cts futures premium,
down 0.37cts to $1.8584 gallon. Prompt ULSD for export out-of-state maintained
a 0.50cts discount to the CARB ULSD, down 0.37cts to $1.8584 gallon.
Bay area December CARB ULSD was talked at a 6.75cts discount to January ULSD
futures, slightly lower at $1.7834 gallon.
Pacific Northwest prompt ULSD was indexed at a 3.5cts discount to the MERC,
down 0.62cts to $1.8159 gallon.
In paper trade, benchmark crude and RBOB futures ended the session lower
while nearby delivery month ULSD futures ended slightly higher.
EIA reported a smaller than expected 1.2 million bbl draw in domestic crude
supplies last week, though it marked the second consecutive week lower stocks.
Nationwide gasoline supplies increased 2.0 million bbl while distillate
inventories fell 1.5 million bbl amid a near 11% jump in demand.
NYMEX January West Texas Intermediate settled down 50cts at $51.15 bbl and
the February Intercontinental Exchange Brent contract declined a nickel to
$60.15 bbl settlement.
January NYMEX RBOB fell 1.94cts to $1.4204 gallon settlement and the January
ULSD contract added 0.38cts to settle at $1.8509 gallon.
Dawn Gallagher, 1.732.531.4451, firstname.lastname@example.org, www.dtn.com. (c)
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