U.S. WCoast Products - Gasoline rises on inventory draw
HOUSTON Aug 13 (Reuters) - California gasoline's premium rose in the Los Angeles wholesale market on Wednesday after the U.S. government reported a draw on West Coast gasoline inventory, traders said.
August-delivery CARBOB gasoline gained 4 cents a gallon to 18 cents a gallon over September NYMEX RBOB gasoline in L.A. after the U.S. Energy Information Administration said West Coast gasoline inventory fell 170,000 barrels last week to 27 million barrels.
August CARBOB was unchanged at 19 cents a gallon over September NYMEX RBOB gasoline in the San Francisco Bay market.
CARBOB gasoline is mandated by the California Air Resources Board (CARB) for use in the state and meets more stringent anti-pollution standards than gasoline in most of the country, as required by the U.S. Environmental Protection Agency. CARBOB is made to blend with ethanol.
August EPA gasoline fell 11 cents to 19 cents a gallon over September NYMEX RBOB in the Portland, Oregon, market on expectations of increasing supply to the Pacific Northwest in the coming days.
As with gasoline, a state-specific ultra-low sulfur diesel is required by the CARB, with a more stringent formula than EPA diesel.
August CARB diesel rose 0.5 cent a gallon in the L.A. market to 9.5 cents a gallon over September NYMEX heating oil after the EIA said West Coast distillate inventory fell 388,000 barrels to 11.4 million barrels.
In the Bay market, August CARB diesel gained 2 cents a gallon to 12 cents a gallon over September NYMEX heating oil.