Bloomberg News

San Francisco Gasoline Surges to Six-Week High on Tesoro Work

February 13, 2012

Feb. 13 (Bloomberg) -- California-blend gasoline in San Francisco jumped to a six-week high against futures after Tesoro Corp. was said to extend a maintenance turnaround at the Martinez refinery by two weeks on longer-than-expected repairs.

Carbob in San Francisco strengthened 7.5 cents to a premium of 19.5 cents against gasoline futures traded on the New York Mercantile Exchange at 5:43 p.m. East Coast time, according to data compiled by Bloomberg. That’s the largest spread for the fuel since Dec. 30.

San Antonio-based Tesoro may take a few more weeks than originally scheduled to finish a planned turnaround at the 170,000-barrel-a-day Martinez refinery in Northern California, two people familiar with the plant’s operations said. Work on a crude unit and a hydrodesulphurization unit is taking longer than expected, one person said.

Tina Barbee, a spokeswoman in San Antonio, declined to comment on the delay. Maintenance at the plant isn’t expected to affect the refinery’s “ability to meet regional contractual product supply commitments,” she said in an e-mail.

“It is Tesoro’s long-standing policy -for understandable proprietary and competitive reasons— not to discuss status of specific units or maintenance activities,” she said.

The premium for Carbob in Los Angeles narrowed 1.5 cents to 19.5 cents against gasoline futures.

San Antonio-based Valero Energy Corp. was “wrapping up” a turnaround at the 135,000-barrel-a-day Wilmington refinery and expects to start units over the next few days, Bill Day, a company spokesman in San Antonio, said in an e-mail.

California-blend, or CARB, diesel in Los Angeles slipped 0.25 cent to a premium of 0.75 cent to Nymex heating oil futures. San Francisco CARB diesel strengthened 0.75 cent to a premium of 0.25 cent against futures.

Conventional, 87-octane gasoline in Portland, Oregon, rose 5.5 cents to a discount of 9.5 cents versus gasoline futures.

--Editors: Margot Habiby, Charles Siler

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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