Bloomberg News

Los Angeles Diesel Gains to Two-Week High as Refineries Flare

July 30, 2013

California-blend diesel in Los Angeles advanced to the highest level against futures in two weeks after Tesoro Corp. (TSO:US) and Phillips 66 reported flaring at their refineries in Southern California.

Tesoro’s 266,000-barrel-a-day Carson plant reported flaring after a compressor trip yesterday, a notice to state regulators shows. Phillips 66’s 139,000-barrel-a-day Los Angeles refinery also reported flaring in the Carson section of the complex, a separate notice showed.

California-grade, or CARB, diesel in Los Angeles strengthened 2.5 cents to a premium of 3.75 cents a gallon against ultra-low-sulfur diesel futures traded on the New York Mercantile Exchange at 3:32 p.m., data compiled by Bloomberg show. That’s the highest level for the fuel since July 15. Prompt-delivery gained 1.5 cents to $3.0465 a gallon.

CARB diesel in San Francisco jumped 2.75 cents to 4 cents a gallon above futures, also a two-week high.

The Carson section of Phillips 66 (PSX:US)’s Los Angeles refinery serves as the “front end,” initially processing the crude oil, according to the company’s website. Rich Johnson, a spokesman at the company’s headquarters in Houston, said by e-mail yesterday that the plant isn’t performing planned work.

Tina Barbee, a spokeswoman at Tesoro headquarters in San Antonio, didn’t immediately respond to an e-mailed request for comment.

Portland Diesel

Low-sulfur diesel in Portland, Oregon, a benchmark for the U.S. Pacific Northwest, climbed 0.75 cent against ULSD futures to a premium of 2.5 cents, the highest since July 9.

Conventional, 87-octane gasoline in Portland gained 4 cents against gasoline futures on the Nymex to a premium of 9.5 cents a gallon, while California-blend gasoline, or Carbob, in Los Angeles slid 4.5 cents to 4.5 cents a gallon below futures.

Retail gasoline in California slipped 0.5 cent to $3.994 a gallon, Heathrow, Florida-based AAA, the nation’s largest motoring organization, said today on its website.

The 3-2-1 crack spread of Alaska North Slope crude, Carbob in Los Angeles and CARB diesel in Los Angeles widened 53 cents to $16.21 a barrel at 4 p.m. New York time.

To contact the reporter on this story: Lynn Doan in San Francisco at

To contact the editor responsible for this story: Bill Banker at

The Good Business Issue

Companies Mentioned

  • TSO
    (Tesoro Corp)
    • $74.6 USD
    • 1.08
    • 1.45%
  • PSX
    (Phillips 66)
    • $72.1 USD
    • -0.46
    • -0.64%
Market data is delayed at least 15 minutes.
blog comments powered by Disqus