On Monday and again in yesterday’s issue of The Schork Report, we expressed our concern regarding the relatively low levels of overall stocks of transportation fuels (on-highway diesel and gasoline) on the West Coast (PADD V).
That concern was amplified, first, by an apparent uptick in intermodal transport demand; vis-à-vis a 14% jump in activity at the Port of Long Beach in August; and then by the fire last Friday at Tesoro’s Wilmington refinery near Los Angeles.
Specifically, while the flattening of the NYMEX WTI contango has led to most of the country swimming in products, the West Coast market remains tight. According to the latest data from Long Beach, container or TEUs (Twenty-foot Equivalent Unit) traffic year-to-date is down around 25%.