Bloomberg News

Los Angeles Gasoline at Discount to Futures on Chevron Start

December 01, 2011

Dec. 1 (Bloomberg) -- California-blend gasoline in Los Angeles traded at a discount to futures for a second consecutive day after Chevron Corp. started units at the El Segundo refinery in Southern California following a power failure.

Carbob in Los Angeles was unchanged at a discount of 0.88 cent a gallon versus gasoline futures traded on the New York Mercantile Exchange at 4:10 p.m. New York time, according to data compiled by Bloomberg. The fuel fell to a discount in Los Angeles yesterday for the first time since Nov. 15.

Chevron’s 279,000-barrel-a-day El Segundo plant, California’s largest oil refinery, was bringing process units back to normal operating rates after high Santa Ana winds knocked out power to the plant last night, Rod Spackman, a company spokesman based in El Segundo, said in an e-mail.

“This short disruption will not affect our ability to supply products to our customers in Southern California,” Spackman said.

Chevron was scheduled to return a fluid catalytic cracking unit at the El Segundo plant to service earlier this week after repairs, according to a person familiar with the work. The company also started a crude unit at the 240,000-barrel-a-day Richmond refinery that was shut Nov. 14 after a fire, two people familiar with the plant’s operations said Nov. 29.

Carbob in San Francisco was unchanged at a discount of 1.38 cents, its largest discount to futures since August.

California-blend diesel in Los Angeles fell 0.12 cent to a discount of 0.25 cent to heating oil futures traded on the Nymex. The same fuel in San Francisco dropped 1.87 cents to a discount of 2.75 cents to futures.

Conventional, 87-octane gasoline in Portland, Oregon, weakened 0.5 cent to a discount of 6 cents to futures, the fuel’s lowest level since Aug. 5.

--Editors: Margot Habiby, 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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