Los Angeles Spot Gasoline Prices Fall on Reports of Multiple Cargoes En Route to California

Los Angeles spot gasoline prices were down in Friday afternoon trading on reports that a number of tankers carrying finished motor fuel are set to reach Southern California ports over the weekend and further into March.

March-delivered LA CARBOB traded at 36cts and 35cts above the NYMEX April RBOB contract, 9.5cts narrower than Thursday. The weaker differential more than offset gains in futures and sent the implied price down 7.63cts to $3.3383/gal at about 1:20 p.m. ET.

The retreat in LA CARBOB’s premium came a day after San Francisco spot CARBOB’s premium to the screen weakened by 21.5cts.

No bids or offers were reported for March-timing SF CARBOB by midday, but April material was confirmed to have traded at 6cts over April LA CARBOB and 46cts above the May RBOB contract.

Data from energy cargo tracking firm Vortexa showed several vessels carrying finished gasoline are scheduled to arrive in Los Angeles.

The Seaways Kolberg departed Mazatlan, Mexico, on March 7 and is expected to arrive in Los Angeles on Sunday with a 30,100-bbl cargo of gasoline.

The Table Bay, which departed Freeport, the Bahamas, on Feb. 20, is also expected to reach Los Angeles on Sunday carrying 240,700 bbl of gasoline. In addition, the Torm Dagmar departed Freeport on Feb. 26 and is expected to arrive in Los Angeles on Saturday with a 270,800-bbl gasoline cargo.

Vortexa also reported the Torm Doris departed Freeport on Feb. 26 and is scheduled to arrive in Martinez. Calif., on Tuesday with 269,500 bbl of gasoline.

Additional cargoes are also en route to the region.

The Ipanema Street, T Jungfrau, and Stamatia are expected to arrive in Southern California between March 24 and March 26, with a combined 888,400 bbl of finished gasoline.

And Vortexa showed the Torm Sovereign and Eco Yosemite Park are transiting the Panama Canal and are scheduled to arrive in Los Angeles by late March or early April with a combined 548,300 bbl of gasoline.

Reporting by Sydnee Novak, sbeach@opisnet.com and Erik Papke, epapke@opisnet.com; Editing by Jeffrey Barber, jbarber@opisnet.com