Los Angeles gasoline strengthened against futures after a Phillips 66 (PSX:US) refinery near the city had an unplanned unit shutdown.
The fuel’s discount narrowed after a compressor problem at the plant caused upsets at a hydrogen unit and an alkylation unit yesterday, according to a person with direct knowledge of operations. Repairs were completed and both units restarted, the person said.
The discount for Carbob in Los Angeles narrowed by 2.25 cents to 5.5 cents a gallon versus futures traded on the New York Mercantile Exchange at 4:05 p.m., according to data compiled by Bloomberg. Prompt delivery rose 6.55 cents to $2.7281 a gallon.
Carbob in San Francisco strengthened by 2 cents to a discount of 9.5 cents a gallon versus futures.
Retail gasoline in California fell 0.1 cent to $3.584 a gallon, according to Heathrow, Florida-based AAA.
California-grade, or CARB, diesel in Los Angeles was unchanged against ultra low sulfur diesel futures on the Nymex at a discount of 3.25 cents a gallon. The fuel in San Francisco lost 1 cent to 7.25 cents below futures.
The 3-2-1 crack spread, assuming two barrels of Carbob gasoline and one barrel of CARB diesel in Los Angeles is refined out of three barrels of Alaska North Slope crude, widened $2.60 cents to $11.93 a barrel. The spread, an indicator of refining profitability in the western U.S., has risen 53 percent this month.
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