Bloomberg News

San Francisco Gasoline Advances After Fire at Conoco Refinery

April 13, 2012

California-blend gasoline in San Francisco strengthened to the highest level against futures in four weeks after ConocoPhillips (COP:US) shut a sulfur recovery unit at the Rodeo (CPACCRUD) refinery in Northern California.

Conoco closed the unit at the 128,000-barrel-a-day plant north of San Francisco after a fire broke out there overnight, Randy Sawyer, Contra Costa County’s chief hazardous materials officer, said in an e-mail. The fire was extinguished “within a few minutes,” said Rich Johnson, a Conoco spokesman at company headquarters in Houston.

California-blend gasoline, or Carbob, in San Francisco (MOGSD85P) Carbob advanced for the second day, jumping 7.5 cents to a 3- cent-a-gallon premium against futures traded on the New York Mercantile Exchange at 3:58 p.m. East Coast time, according to data compiled by Bloomberg. That’s the highest level for the fuel in San Francisco since March 16.

Johnson declined to provide the status of the sulfur unit. “Refinery operations are otherwise routine at this time,” he said in an e-mail.

Los Angeles (MOGLDB85) Carbob also rose for a second day, by 1.25 cents to a discount of 2.25 cents a gallon against futures.

Tesoro Corp. (TSO:US) will perform maintenance at the 97,000-barrel- a-day Wilmington (SHWCCRUD) oil refinery in Southern California that may cause the plant to flare from April 16 through April 18, Tina Barbee, a spokeswoman at company headquarters in San Antonio, said in an e-mailed statement.

Conoco yesterday reported a fault at the sulfuric acid plant in the Wilmington section of its 139,000-barrel-a-day Los Angeles (CPLACRUD) refinery April 11.

“A duct on the sulfuric acid plant malfunctioned due to unknown reasons,” the company said in a filing with the California Emergency Management Agency. “An investigation is underway to determine the cause of the malfunction.”

Johnson declined to comment on the incident.

California-blend, or CARB, diesel in Los Angeles (DIEILCAD) climbed 0.5 cent to a premium of 9 cents a gallon against Nymex heating oil futures. The same fuel in San Francisco (DIEISCAD) rose 0.75 cent to a premium of 9.25 cents.

Conventional, 87-octane gasoline in Portland (MOGHD87P), Oregon, increased 1.5 cents to a 1.5-cent premium to gasoline futures.

Low-sulfur diesel in Portland (DIEISTPD) was unchanged at a 31-cent premium versus heating oil 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

  • COP
    (ConocoPhillips)
    • $84.73 USD
    • -0.94
    • -1.11%
  • TSO
    (Tesoro Corp)
    • $59.91 USD
    • 0.98
    • 1.64%
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