The premium for spot gasoline in Los Angeles gained against futures as Exxon Mobil Corp. (XOM:US)’s Torrance refinery reported repairs on a unit and Phillips 66 (PSX:US) was said to shut equipment to fix a leak.
Exxon’s 150,000-barrel-a-day Torrance refinery in Southern California is scheduled to flare gases through March 20 related to unit maintenance after a mechanical upset last week, Gesuina Paras, a company spokeswoman in Torrance, said by e-mail today. The work isn’t expected to affect production, she said.
Phillips 66’s 139,000-barrel-a-day Los Angeles plant was said to shut an isomerization unit today after discovering a leak, a person with direct knowledge of the work said. The unit, which makes unleaded gasoline components, may remain down until tomorrow for line repairs, the person said.
California-blend gasoline, or Carbob, in Los Angeles strengthened 1.5 cents to 10.5 cents a gallon under futures traded on the New York Mercantile Exchange at 4:08 p.m. East Coast time, data compiled by Bloomberg show. Prompt delivery of the fuel dropped 1.99 cents to $3.0239 a gallon.
The same fuel in San Francisco gained 3.5 cents against Nymex gasoline futures to a discount of 11 cents.
Chevron Corp. (CVX:US) said last week that the crude unit at its Richmond refinery, Northern California’s largest, is expected to be back in operation in the second quarter. The 240,000-barrel- a-day plant had planned to restart the equipment, shut since an Aug. 6 fire, by the end of March.
A hydrocracker at Valero Energy Corp. (VLO:US)’s 170,000-barrel-a- day Benicia refinery in Northern California has also been shut since March 10 for repairs on a hydrogen plant.
The spread between San Francisco and Los Angeles Carbob narrowed 2 cents to 0.5 cent a gallon. San Francisco strengthened to a premium against Los Angeles last week for the first time in more than five months.
California-blend, or CARB, diesel in Los Angeles rose a second day against Nymex heating oil futures, increasing 1 cent to a premium of 8 cents a gallon, a one-week high. In San Francisco, the fuel gained a third day against futures, advancing 0.5 cent to a premium of 13.5 cents a gallon.
In Portland, Oregon, low-sulfur diesel fell by 0.5 cent to premium of 9.5 cents a gallon against futures, the fourth straight decline. Conventional, 84-octane gasoline in Portland strengthened 0.5 cent versus gasoline futures to a discount of 19 cents a gallon.
The 3-2-1 crack spread of Alaska North Slope crude, Carbob in Los Angeles and CARB diesel in Los Angeles dropped $1.081 to $16.123 a barrel at 4:10 p.m. New York time. The spread, a measure of refining profitability, hit a one-year low of $3.86 a barrel in December.
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