Bloomberg News

Los Angeles Gasoline Rises on Work at Tesoro Wilmington Refinery

January 12, 2012

Jan. 12 (Bloomberg) -- California-blend gasoline in Los Angeles strengthened by the most in three weeks after Tesoro Corp. was said to be performing work on two units used to make the fuel at the Wilmington refinery in Southern California.

Carbob in Los Angeles jumped 4.25 cents to a premium of 8.5 cents a gallon against gasoline futures traded on the New York Mercantile Exchange at 3:34 p.m. New York time, according to data compiled by Bloomberg. Prompt delivery of the fuel rose 1.05 cents to $2.8163 a gallon.

San Antonio-based Tesoro is conducting a short maintenance turnaround on an isomerization unit, which improves the octane level of gasoline, and a benzene saturation unit, two people familiar with the work said. The 97,000-barrel-a-day refinery may flare gases through Jan. 18, the company said in a regulatory filing yesterday.

“The notification is a precaution in anticipation of potential flaring associated with planned maintenance,” Tina Barbee, a Tesoro spokeswoman in San Antonio, said in an e-mail.

Exxon Mobil Corp. may also flare gases at the 150,000- barrel-a-day Torrance refinery in Southern California through Jan. 15 as the plant recovers from two external power failures earlier this week, according to a notice from the Irving, Texas- based company to the South Coast Air Quality Management District.

Carbob in San Francisco was unchanged at a discount of 2.25 cents, its lowest level since Aug. 16.

California gasoline inventories climbed 2.7 percent to 6.7 million barrels in the week ended Jan. 6, state Energy Commission data show. Diesel supplies jumped 19 percent to 4.05 million barrels, the state said.

Diesel Falls

California-blend diesel in San Francisco fell for the first time in six days, dropping 3.12 cents to a premium of 2.88 cents a gallon against Nymex heating oil futures. The same fuel in Los Angeles declined 0.75 cent to a premium of 4.75 cents.

Conventional, 87-octane gasoline in Portland, Oregon, fell 2 cents to a premium of 3.5 cents against gasoline futures.

Gasoline inventories on the West Coast, known as the Padd 5 region, rose 5.4 percent to 30.2 million barrels in the week ended Jan. 6 from a week earlier, the highest level since August, the Energy Department said yesterday.

--Editors: David Marino, 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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