Gasoline slumped for a second day in Los Angeles as two refineries completed maintenance and boosted production in the region.
Tesoro Corp. (TSO:US) finished a vacuum tower project that will maximize production of gasoline, diesel and jet fuel at the Wilmington, California, refinery, Tina Barbee, a company spokeswoman based in San Antonio, said yesterday. Phillips 66 (PSX:US) wrapped up planned work at a Los Angeles plant.
Together, the refineries will add 236,000 barrels a day of capacity on the U.S. West Coast, which produced about 1.5 million barrels in the week ended Nov. 21, according to Energy Department data. That’s the lowest level since Oct. 19 and the smallest output for the season since 2010, data compiled by Bloomberg show.
Conventional, 85.5-octane gasoline, or Carbob, slid 3.75 cents to trade at a premium of 7.5 cents a gallon against futures on the New York Mercantile Exchange at 1:46 p.m. New York time. The same fuel was unchanged at a discount of 4 cents versus futures in San Francisco.
“Tesoro announced their vacuum unit going to operation and the Los Angeles refinery is done with maintenance,” Bob Van der Valk, an independent pricing analyst in Terry, Montana. “Everything is coming back online and that’s dragging the price down.”
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