Bloomberg News

California Gasoline Strengthens for Second Day on Refinery Work

October 04, 2011

Oct. 4 (Bloomberg) -- California-blend gasoline in San Francisco advanced to the highest premium versus futures in a month after Chevron Corp. started maintenance at the Richmond refinery that may last six weeks.

The premium for Carbob in San Francisco jumped 5 cents to 27 cents a gallon above gasoline futures traded on the New York Mercantile Exchange at 4:38 p.m. East Coast time, according to data compiled by Bloomberg. It’s the highest premium since Sept. 2. Prompt delivery of the fuel rose 2.74 cents to $2.7584.

Chevron is conducting work at the 240,000-barrel-a-day Richmond refinery, the largest one in northern California, that will last four to six weeks. The plant was scheduled to shut a crude unit as part of the turnaround, a person familiar with the plant’s operations said in July.

Carbob in Los Angeles widened its premium to futures by 3.5 cents to 24 cents. California-blend diesel in Los Angeles weakened 3 cents to a premium of 11.5 cents above heating oil futures traded on the Nymex.

Exxon Mobil Corp. spilled at least a barrel of crude oil at its Torrance refinery south of Los Angeles yesterday, Barbara Burgett, a spokeswoman at the plant, said in an e-mail.

“There was no safety incident and no impact to production nor the community,” she said. “The refinery is operating normally.”

Conventional, 87-octane gasoline in Portland, Oregon, rose 5.25 cents to 32 cents over futures. That’s the largest premium for the fuel since Sept. 6.

--Editors: David Marino, Charlotte Porter

To contact the reporter on this story: Lynn Doan in San Francisco at ldoan6@bloomberg.net

To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net


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