Los Angeles spot diesel products bolstered sizable differential gains in swift morning trade Wednesday, as futures' downward pressure strained implied prices.
June-delivery LA ULSD kicked off the session with a trade executed at 39cts over the NYMEX July ULSD rate, widening premiums to the screen by a hefty 14.5cts from yesterday's mean. Stronger basis values outpaced futures declines, firming the implied price by 1.51cts to $4.3165/gal as of 10:55 a.m. ET.
Los Angeles CARB diesel's premium widened by 5cts after changing hands at 35cts above July futures. Futures losses offset gains and tugged the implied price down nearly 8cts to $4.2765/gal.
Wednesday's sharp upward moves came on the heels of the Energy Information Administration's latest inventory release, which showed West Coast diesel holdings falling by 200,000 bbl to 10 million bbl in the week ending Friday.
That left stocks roughly 300,000 bbl behind figures seen at this time last year.
This content was created by Oil Price Information Service, which is operated by Dow Jones & Co. OPIS is run independently from Dow Jones Newswires and The Wall Street Journal.
Reporting by Sydnee Novak, sbeach@opisnet.com; Editing by My Nguyen, mynguyen@opisnet.com
(END) Dow Jones Newswires
05-20-26 1155ET
