Bloomberg News

Los Angeles Gasoline Rises First in Three Days on Hydrogen Work

November 04, 2011

Nov. 4 (Bloomberg) -- The premium for California-blend gasoline in Los Angeles rose for the first time in three days after Air Products and Chemicals Inc. said it shut a plant that delivers hydrogen to several Southern California refineries.

The premium for Carbob in Los Angeles climbed 0.5 cent to 32.5 cents a gallon above gasoline futures traded on the New York Mercantile Exchange at 4:13 p.m. East Coast time, according to data compiled by Bloomberg. The fuel had weakened for two days straight on a rise in inventories.

Air Products shut production at the hydrogen plant in Carson, California, for work that’s scheduled to last until Nov. 11, Art George, a spokesman for Air Products, said in a telephone interview. The work was planned to coincide with maintenance at Tesoro Corp.’s Wilmington refinery, which receives hydrogen from Carson, he said.

The Carson plant, along with a second one in Wilmington that’s connected by pipeline, delivers hydrogen to several oil refineries in the area, George said from company headquarters in Allentown, Pennsylvania. The Carson plant is east of BP Plc’s Carson refinery and north of refineries operated by Tesoro, Valero Energy Corp. and ConocoPhillips.

The premium for Carbob in San Francisco weakened 1 cent to 27.5 cents a gallon above futures.

Conventional, 87-octane gasoline in Portland, Oregon, fell 1.5 cents to a premium of 21 cents above futures.

--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: Bill Banker at bbanker@bloomberg.net


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