The Los Angeles CARBOB Ended with a Modest Decline Monday in a Volatile Year

The Los Angeles CARBOB ended with a modest decline Monday in a volatile year that saw a record $1.64/gal swing in the cash differential. 

Platts assessed the main California-specific gasoline grade down 1.75 cents to NYMEX February RBOB futures plus 3.50 cents/gal. San Francisco CARBOB widened its spread to Los Angeles CARBOB to a 5-cent discount compared with a discount of 3 cents Friday. Portland unleaded was slightly higher on a new delivery month at February minus 4 cents/gal. 

Sources said the last day of 2012 trading was as light as expected and slightly depressed by government data Friday showing a 408,000-barrel gain in West Coast gasoline inventories for the week ending December 21. 

"It's quite a build on gasoline," said one source. "But that didn't equate to any activity at all. People will digest it on Wednesday." 

Stocks were at 33 million barrels, back up to where they were two weeks earlier when Los Angeles CARBOB hit a low for the year of minus 19 cents/gal on December 17. Just two months earlier, regional gasoline stocks were at 26.4 million barrels and the differential reached an all-time high of $1.45/gal over the NYMEX. 

"Gas stocks are high," a second trader said. "Going into January, which is typically the lowest demand month of the year, it doesn't look pretty."