Spot gasoline in Los Angeles dropped against futures as BP Plc and Tesoro Corp (TSO:US). were said to be preparing for the restart of production units at their refineries in Southern California.
BP’s 266,000-barrel-a-day Carson refinery, California’s second-largest, is scheduled to flare gases tomorrow through Feb. 16 related to the startup of a fluid catalytic cracker and alkylation unit following a maintenance turnaround, a person with knowledge of operations at the plant said yesterday.
Tesoro is also finishing a turnaround at the 97,000-barrel- a-day Wilmington refinery and was expected to begin starting equipment this week, two people with knowledge of the work said Feb. 6.
The premium for California-blend gasoline, or Carbob, in Los Angeles narrowed 1.75 cents to 30 cents a gallon versus futures traded on the New York Mercantile Exchange at 1:38 p.m. East Coast time, data compiled by Bloomberg show. Prompt delivery in Los Angeles rose 3.14 cents to $3.3488 a gallon.
Nymex gasoline futures rose 5.89 cents, or 2 percent, to settle at $3.0588 a gallon as a storm swept through the U.S. Northeast.
Carbob in San Francisco weakened 0.75 cent to 9.5 cents a gallon above futures. Prompt delivery there gained 4.14 cents to $3.1438 a gallon.
Tesoro’s 170,000-barrel-a-day Golden Eagle refinery started a “major unit” on Feb. 4, according to a notice to Contra Costa County regulators shows.
Tina Barbee, a Tesoro spokeswoman at the company’s headquarters in San Antonio, said by e-mail today that the Golden Eagle and Wilmington plants are performing maintenance.
San Francisco Carbob strengthened 1 cent to a discount of 20.5 cents a gallon against the fuel in Los Angeles. The gap reached a record 32.5 cents a gallon on Jan. 14.
California-blend, or CARB, diesel in Los Angeles was unchanged at an 11-cent-a-gallon premium to Nymex heating oil futures. The same fuel in San Francisco held at a premium of 11.5 cents a gallon.
In Portland, low-sulfur diesel was also unchanged at 5 cents a gallon above heating oil futures. Conventional, 84- octane gasoline remained at a premium of 3 cents a gallon to gasoline futures.
Portland 84-octane gasoline strengthened 1.75 cents to 27 cents a gallon under Los Angeles Carbob. The spread reached a record 75.5 cents a gallon on Oct. 4.
The 3-2-1 refinery crack spread between Alaskan North Slope crude, Carbob in Los Angeles and CARB diesel in Los Angeles, narrowed $1.96 to $26.93 a barrel at 2:22 p.m. New York time. The crack, a measure of refining profitability, has more than doubled since the beginning of the year.
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