Bloomberg News

California-Blend Gasoline Drops on High Fuel Supply, Few Buyers

March 27, 2012

California-blend gasoline dropped for a second day after Tesoro Corp. (TSO:US) restored production at the Golden Eagle refinery and a report showed supplies on the U.S. West Coast jumped by the most in 11 weeks.

Tesoro, based in San Antonio, said March 22 that the 170,000-barrel-a-day Golden Eagle (TEMTCRUD) refinery in Martinez, California, was at planned rates following a maintenance turnaround. West Coast gasoline stocks rose 3.6 percent to 31.5 million barrels in the week ended March 23 from a week earlier, the American Petroleum Institute said today.

California-blend, or Carbob, gasoline in Los Angeles (MOGLDB85) fell 3.5 cents to a discount of 3 cents a gallon against gasoline futures traded on the New York Mercantile Exchange, according to data compiled by Bloomberg. The same fuel in San Francisco (MOGSD85P) also dropped 3.5 cents to a 5 cent discount to futures.

BP Plc (BP/), based in London, is scheduled to flare gases at the 266,000-barrel-a-day Carson (BPCRCRUD) refinery in Southern California through April 2, according to a notice the company filed with air regulators. Tesoro, based in San Antonio, also planned to flare gases at the 97,000-barrel-a-day Wilmington (SHWCCRUD) refinery in Southern California through today, a separate filing shows.

“We do not anticipate any impact upon our ability to meet regional contractual product supply commitments,” Tina Barbee, a Tesoro spokeswoman in San Antonio, said in an e-mail.

California-blend diesel, or CARB diesel, in Los Angeles (DIEILCAD) dropped for the first time in three days, falling by 0.87 cent to a 13.13 cent-a-gallon premium against Nymex heating oil futures. The same fuel in San Francisco (DIEISCAD) was unchanged at a 12.5 cent premium versus futures.

BP’s Carson refinery began a maintenance turnaround about a week ago, a person familiar with the plant’s operations said March 19. Daren Beaudo, a BP spokesman in Houston, didn’t immediately respond to an e-mail requesting comment on scheduled flaring at the plant.

Conventional, 87-octane gasoline in Portland (MOGHD87P), Oregon, slipped 0.75 cent to a 6.25 cent premium to gasoline futures.

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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Companies Mentioned

  • TSO
    (Tesoro Corp)
    • $71.41 USD
    • 3.31
    • 4.64%
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