Bloomberg News

San Francisco Gasoline Extends Highest Premium in Two Weeks

October 31, 2011

Oct. 31 (Bloomberg) -- California-blend gasoline in San Francisco extended its highest premium to futures in two weeks after Valero Energy Corp. was said to be planning work at the Wilmington refinery in Southern California.

Carbob in San Francisco rose 1 cent to 30.75 cents a gallon to gasoline futures traded on the New York Mercantile Exchange at 4:19 p.m. East Coast time, according to data compiled by Bloomberg. The fuel’s premium touched a two-week high Oct. 28 after Tesoro Corp.’s 170,000-barrel-a-day Martinez refinery was said to be recovering from a power failure.

Valero will cut rates at the 135,000-barrel-a-day Wilmington refinery to perform maintenance on several units in January, two people with direct knowledge of the work said today. The refinery will shut a fluid catalytic cracker, alkylation unit and hydrotreater Jan. 13 through early February, one of the people said.

San Antonio-based Valero will release a maintenance schedule tomorrow before a conference call on the company’s third-quarter earnings, Bill Day, a company spokesman in San Antonio, said in an e-mail.

“I can answer questions about turnarounds at that point,” he said.

The premium for Carbob in Los Angeles gained 0.5 cent to 32.25 cents a gallon, the highest price since Oct. 17.

The premium for conventional, 87-octane gasoline in Portland, Oregon, rose 3.13 cents to 14.13 cents above futures.

ConocoPhillips is planning work on four heat exchanger and reboiler units at the 107,500-barrel-a-day Ferndale refinery in Washington as part of a project scheduled to last from December through April, according to a filing with regulators.

Two of the units are associated with a debutanizer, one with an alkylation unit and another with a crude unit, the filing showed.

--Editors: Charlotte Porter, David Marino

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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