Bloomberg News

California-Blend Gasoline Slips as Refiners Recover From Upsets

October 17, 2011

Oct. 17 (Bloomberg) -- California-blend gasoline’s premium to futures slipped as three Southern California refineries recovered from weekend upsets.

The premium for California-blend gasoline, or Carbob, in Los Angeles fell 0.5 cent to 35.5 cents a gallon above gasoline futures traded on the New York Mercantile Exchange at 4:17 p.m. East Coast time, according to data compiled by Bloomberg. Prompt delivery of the fuel fell 8.68 cents to $3.0979 a gallon.

Valero Energy Corp. and Exxon Mobil Corp. said breakdowns at their refineries in Southern California didn’t affect supply.

“There was no impact to production,” Rachael Moore, a spokeswoman for Exxon Mobil, said in an e-mail yesterday. “The refinery is operating normally.”

ConocoPhillips reported unplanned flaring to air regulators at the 147,000-barrel-a-day Wilmington refinery that may last through today. Rich Johnson, a Conoco spokesman in Houston, declined to comment on the notice to local regulators.

Conoco was said to shut a hydrotreater at the Wilmington refinery Oct. 9 after a leak sparked a fire at the unit. Traders speculated last week that the unit would be started shortly, said Bob van der Valk, an independent fuel pricing analyst in Terry, Montana.

San Francisco Carbob also slipped 0.5 cent, to a premium of 29.5 cents over gasoline futures.

The premium for conventional, 87-octane gasoline in Portland, Oregon, strengthened 4.75 cents to 42.75 cents versus futures.

Tesoro Corp. reported unscheduled shutdowns of a catalytic cracker and an alkylation unit at the 125,000-barrel-a-day Anacortes refinery in Washington on Oct. 1, according to a regulatory filing e-mailed to Bloomberg on Oct. 14 by the Northwest Clean Air Agency.

Mike Marcy, a Tesoro spokesman based in Martinez, California, said the company is conducting “maintenance activities” at the Anacortes plant.

“We expect to continue meeting our contractual supply commitments to customers in the region,” he said in an e-mail today.

--Editors: Charlotte Porter, Richard Stubbe

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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