USWC Weekly: Gasoline Spot Prices Mixed Despite Improving Supplies


   
   MIAMI, FL (DTN) -- U.S. West Coast fuel prices were mixed this week despite 
improving regional inventories, while the absence of refinery flaring activity 
eased concerns over supply disruptions that drove sharp price increases earlier 
this spring.

   The steepest drop was seen in Portland sub-octane price, which averaged 
$2.89 gallon during the week, down 16cts, or 5.30%, from the prior week's 
average of $3.05 gallon, but remained 69cts above the price reported the same 
week of last year.

   In contrast, Los Angeles CARBOB gasoline regular rose 6 cents, or 1.87%,  to 
a weekly average price of $3.25 gallon. This was 94 cents higher than the price 
seen in the same period the prior year.

   The divergence in West Coast prices occurred despite a rebound in motor 
gasoline inventories in PADD 5 after a five-week of declines. Gasoline stocks 
climbed by 900,000 bbl to 28.9 million bbl during the week ended June 19, up 
from 28 million bbl the previous week, according to the U.S. Energy Information 
Administration released Wednesday (6/24). Inventories were 200,000 bbl higher 
than the same week last year. 
Further supporting the market's recovery,  no significant refinery flaring 
events or unplanned operational disruptions were reported across the U.S. West 
Coast this week. The lack of refinery incidents has removed a key source of 
risk premium that supported gasoline and diesel basis values during April and 
May, allowing prices to increasingly reflect improving inventory levels rather 
than concerns over potential supply interruptions.

    




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