Bloomberg News

Los Angeles Gasoline Strengthens After Valero Plant Shuts Units

February 04, 2013

Spot gasoline in Los Angeles strengthened against futures after Valero Energy Corp. (VLO:US)’s Wilmington refinery in Southern California shut two process units for repairs.

The 78,000-barrel-a-day plant took the fluid catalytic cracker and the alkylation unit out of service today, Bill Day, a spokesman at Valero’s headquarters in San Antonio, said by e- mail. Repairs are expected to take about two weeks, Day said.

California-blend gasoline, or Carbob, in Los Angeles advanced 2 cents to 30 cents a gallon above gasoline futures traded on the New York Mercantile Exchange at 1:25 p.m. East Coast time, data compiled by Bloomberg show. Prompt delivery in Los Angeles slipped 0.85 cent to $3.3251 a gallon.

The Wilmington plant was scheduled to shut equipment for work on the alkylation unit’s depropanizer today, a person familiar with the work said Jan. 25. The maintenance is scheduled to be completed Feb. 16, the person said.

Carbob in San Francisco climbed 0.5 cent to a premium of 8 cents a gallon against futures. Prompt delivery of the fuel dropped 2.35 cents to $3.1051 a gallon.

San Francisco Carbob weakened 1.5 cents to a discount of 22 cents a gallon against the fuel in Los Angeles. The gap grew to a record 32.5 cents a gallon on Jan. 14.

California-blend, or CARB, diesel in Los Angeles was unchanged at a 7.75-cent-a-gallon premium to Nymex heating oil futures. The same fuel in San Francisco was also unchanged at 7.5 cents a gallon under futures.

In Portland, low-sulfur diesel was unchanged at 5 cents a gallon above heating oil futures. Conventional, 84-octane gasoline there was also unchanged at a discount of 3 cents to gasoline futures.

Portland 84-octane gasoline weakened 2 cents to 33 cents a gallon under Los Angeles Carbob. The spread reached a record 75.5 cents a gallon on Oct. 4.

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

  • VLO
    (Valero Energy Corp)
    • $50.11 USD
    • 0.90
    • 1.8%
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