Bloomberg News

Los Angeles Gasoline Strengthens to Two-Week High on New Cycle

December 09, 2011

Dec. 9 (Bloomberg) -- Los Angeles gasoline strengthened for the second day as scheduling began for the third cycle of the month on Kinder Morgan Energy Partners LP’s West line.

California-blend gasoline, or Carbob, in Los Angeles rose 2 cents to a premium of 6.5 cents versus gasoline futures on the New York Mercantile Exchange at 4:16 p.m. New York time, according to data compiled by Bloomberg. That’s the highest level since Nov. 25.

Kinder Morgan started scheduling for the third cycle on the West line, which carries refined products from Southern California into Arizona. Los Angeles Carbob strengthened yesterday when a refiner bought off the spot market before the second cycle ended, said Bob van der Valk, an independent pricing analyst in Terry, Montana.

California-blend gasoline in San Francisco slipped 0.5 cent to a premium of 1 cent a gallon after ConocoPhillips and Royal Dutch Shell Plc reported unit starts at their refineries in Northern California.

ConocoPhillips was starting a hydrocracker at the Rodeo refinery after a hydrogen plant shutdown Dec. 5, and Shell was starting a Dimersol unit at the Martinez refinery, according to filings with county regulators.

California-blend diesel, known as CARB diesel, in Los Angeles fell 0.13 cent to a discount of 3.63 cents to heating oil futures traded on the Nymex. The same fuel in San Francisco was unchanged at a discount of 2.25 cents to futures.

Conventional, 87-octane gasoline in Portland, Oregon, strengthened for the first time in a week, jumping 7 cents to reach parity with futures.

--Editors: Richard Stubbe, 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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