Spot gasoline in San Francisco weakened to the lowest level against futures in more than two weeks as refiners including BP Plc and Tesoro Corp (TSO:US). were said to be restarting equipment after repairs.
Tesoro’s 170,000-barrel-a-day Golden Eagle refinery is restarting a hydrocracker after replacing equipment, a person with direct knowledge of the work said today. The unit is expected to return to full rates within two days, said the person, who asked not to be identified because the information isn’t public.
The premium for California-blend gasoline, or Carbob, in San Francisco narrowed 7 cents to 1.5 cents a gallon versus futures traded on the New York Mercantile Exchange at 4:04 p.m. East Coast time, the lowest level since Jan. 25, data compiled by Bloomberg show. Prompt delivery in San Francisco fell 4.09 cents to $3.0653 a gallon.
The Golden Eagle refinery’s hydrocracker was shut Feb. 2 after a hole was found in a line, a person with knowledge of the outage said Feb. 4. The repairs, initially expected to take three weeks, were finished ahead of scheduled using equipment the plant had at hand, two people familiar with operations there said today.
Tesoro’s 97,000-barrel-a-day Wilmington refinery near Los Angeles was expected to finish a maintenance turnaround last week, two people familiar with the work said Feb. 6. BP’s Carson refinery was scheduled to flare through Feb. 16 as it starts units following planned work.
Carbob in Los Angeles slipped 0.5 cent to 29 cents a gallon above Nymex futures, the lowest premium for the fuel in four days. Prompt delivery gained 2.41 cents to $3.3403 a gallon.
Tina Barbee, a Tesoro spokeswoman at the company’s headquarters in San Antonio, said by e-mail today that both the Wilmington and Golden Eagle plants are performing planned work. She didn’t immediately respond to an e-mailed request for comment on the hydrocracker’s restart.
San Francisco Carbob weakened 6.5 cents to a discount of 27.5 cents a gallon against the fuel in Los Angeles, the biggest spread since Jan. 25. 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 8.5-cent-a-gallon premium to Nymex heating oil futures. The same fuel in San Francisco slid 1.25 cents to a premium of 10.25 cents a gallon.
In Portland, low-sulfur diesel gained 1 cent a gallon to 6 cents above heating oil futures. Conventional, 84-octane gasoline there remained 2 cents a gallon above gasoline futures.
Portland 84-octane gasoline’s discount to Los Angeles Carbob strengthened 0.5 cent to 27 cents a gallon. 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, widened for the first time in three days, gaining 26.1 cents to $23.765 a barrel at 4:06 p.m. New York time. The crack, a measure of refining profitability, reached a year-low of $3.858 a barrel on Dec. 5.
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