Bloomberg News

Los Angeles Gasoline Rises After BP Carson Said to Perform Work

February 01, 2012

Feb. 1 (Bloomberg) -- California-blend gasoline rose by the most in almost two weeks against gasoline futures after BP Plc was said to be performing work at the Carson oil refinery in Southern California.

BP, based in London, is conducting planned maintenance at the 266,000-barrel-a-day Carson plant, California’s second- largest refinery, while Ineos finishes a maintenance turnaround at the adjoining polypropylene plant, a person familiar with the refinery’s operations said today.

Carbob in Los Angeles jumped 2 cents, the largest rise since Jan. 19, to a premium of 9.75 cents versus gasoline futures traded on the New York Mercantile Exchange at 4:55 p.m., according to data compiled by Bloomberg. The fuel weakened 1.25 cents yesterday when the state said sales fell in October for the eighth straight month.

The Carson refinery is scheduled to flare gases through Feb. 7, according to a notice filed with the South Coast Air Quality Management District. Ineos’ plant, which was shut for the turnaround, uses the flare system at the Carson refinery during maintenance, said the person, who declined to be identified because the information isn’t public.

Carbob in San Francisco rose 2.5 cents to a premium of 0.75 cent against futures, the highest level in five days.

California-blend, or CARB, diesel in Los Angeles was unchanged at a premium of 1 cent against Nymex heating oil futures. The same fuel in San Francisco slipped 0.38 cent to a discount of 2.38 cents against futures.

California distillate inventories climbed 2.6 percent last week from a week earlier to 4.51 million barrels, the state Energy Commission said. Gasoline supplies were little changed at 7.11 million barrels, the state said.

Conventional, 87-octane gasoline in Portland, Oregon, fell 5 cents to a discount of 15 cents to futures, the lowest level since July 26.

Gasoline inventories on the U.S. West Coast, known as the Padd 5 region, slipped for the first time in five weeks, by 1.8 percent to 31.7 million barrels in the week ended Jan. 27, according to the Energy Department.

--Editors: Richard Stubbe, Margot Habiby

-0- Feb/01/2012 23:06 GMT

-0- Feb/01/2012 23:21 GMT

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 -0- Feb/01/2012 22:55 GMT


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