Bloomberg News

Los Angeles Fuel Rises on Tesoro Refinery Work

July 19, 2012

Spot gasoline in Los Angeles advanced for the first time in three days after BP Plc (BP/)’s Carson refinery was said to be performing work on benzene-stripping equipment in the crude unit and Phillips 66 (PSX:US)’s Rodeo plant reported a pump fire.

The 266,000-barrel-a-day Carson refinery in Southern California shut equipment that strips residual benzene from the crude unit for about three weeks of maintenance, a person familiar with operations at the plant said. Phillips 66 extinguished a fire on a pump at the 76,000-barrel-a-day Rodeo plant, Rich Johnson, a company spokesman in Houston, said.

California-blend, or Carbob, gasoline in Los Angeles advanced 3 cents to a discount of 4 cents a gallon against gasoline futures traded on the New York Mercantile Exchange, data compiled by Bloomberg shows. The same fuel in San Francisco also added 3 cents to 9 cents below gasoline futures.

“There were no injuries, no impact to the surrounding community and no impact to operations associated with the fire,” Johnson said in an e-mailed statement regarding the fire at Rodeo.

California-blend diesel, or CARB diesel, in Los Angeles strengthened 0.25 cent to a premium of 4.25 cents a gallon versus heating oil futures traded on the Nymex.

Chevron Corp. (CVX:US) plans to shut a catalytic cracker at the 279,000-barrel-a-day El Segundo refinery near Los Angeles for a maintenance turnaround in the first quarter of next year, two people with knowledge of the schedule said. The work is scheduled to begin Jan. 13 and last as many as 43 days, one of the people said.

Chevron Maintenance

An alkylation unit will also be shut as part of the turnaround, one person said.

San Francisco CARB diesel dropped 1.25 cents to 1.5 cents a gallon above futures.

CARB diesel inventories increased 465,000 barrels, or 22 percent, last week to 2.54 million barrels, the state Energy Commission said in an e-mailed report yesterday.

Conventional, 87-octane gasoline in Portland, Oregon, was unchanged at a premium of 1 cent a gallon versus Nymex gasoline futures. Low-sulfur diesel there gained 1 cent to 23 cents above 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

  • PSX
    (Phillips 66)
    • $82.65 USD
    • 0.55
    • 0.67%
  • CVX
    (Chevron Corp)
    • $133.57 USD
    • -1.28
    • -0.96%
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