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Spot gasoline in Los Angeles weakened against futures for the first time in four days on suppliers selling fuel in the market even as Tesoro Corp. (TSO) and ConocoPhillips (COP) shut units at California refineries.
Tesoro shut a compressor at the 97,000-barrel-a-day Wilmington refinery in Southern California after a power failure, said Tina Barbee, a spokeswoman at the company’s headquarters in San Antonio. Conoco, based in Houston, also shut a sulfur unit at the 128,000-barrel-a-day Rodeo refinery in California after a fire, county regulators said.
Refineries were selling in the wholesale market despite the shutdowns, adding to speculation that supply is still high, said Bob van der Valk, an independent fuel pricing analyst in Terry, Montana. Tesoro cut fuel prices at the rack in Southern California after the compressor was shut, he said.
“Tesoro is shrugging it off,” van der Valk said in a message.
California-blend gasoline, or Carbob, in Los Angeles dropped 5.5 cents to a discount of 2 cents a gallon against futures traded on the New York Mercantile Exchange, according to data compiled by Bloomberg. The decline was the first in four days.
San Francisco Carbob tumbled 8.5 cents to a premium of 2.5 cents a gallon.
CARB diesel in Los Angeles slipped 0.75 cent to 6.5 cents a gallon above Nymex heating oil futures. The same fuel in San Francisco fell 1.5 cents to a 7-cent premium.
Conventional, 87-octane gasoline in Portland, Oregon, dropped 5.5 cents to 2 cents above gasoline futures. Low-sulfur diesel there fell for the second day, by 4 cents to a premium of 23.5 cents a gallon versus heating oil futures.
Tesoro finished planned work on the diesel hydrotreater at the Anacortes refinery in Washington last week and was preparing to start it over the weekend, a person with direct knowledge of the work said April 13. An unspecified unit was in the process of starting yesterday, Barbee said in an e-mail.
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