Los Angeles gasoline climbed to the highest level against futures in six weeks after three ships were chartered off the U.S. West Coast, pulling supplies from the area while a local refinery performs unplanned work.
California-grade gasoline in Los Angeles, or Carbob, rose 2 cents to a premium of 5.5 cents versus futures on the New York Mercantile Exchange at 2:06 p.m, the strongest level since Nov. 11, according to data compiled by Bloomberg. California-grade, or CARB, diesel in the region gained 0.25 cent to a discount of 2.75 cents a gallon against Nymex ultra low sulfur diesel futures.
Ships including the Buddy, the Isola Celeste and the Iver Expert were chartered from the coast in the past seven days, according to Bloomberg fixture data. Another ship, the Stena Concert, left the region the previous week.
Tesoro Corp. (TSO:US) continued unscheduled work on a No. 2 reformer at its Carson refinery while preparing to shut a hydrocracker for six weeks of maintenance at its Wilmington plant. The two sites, both part of the company’s Los Angeles complex, have a combined capacity of 363,000 barrels a day.
Exxon Mobil Corp. (XOM:US)’s Torrance refinery plans to flare gases from tomorrow until Dec. 30, according to a notice to regulators today. The 150,000-barrel-a-day complex is about 20 miles (32 kilometers) south of downtown Los Angeles.
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, rose $2.26 to $15.10 a barrel, the highest level since Oct. 22, according to data compiled by Bloomberg.
Carbob in San Francisco was unchanged at 4.5 cents below futures, while CARB diesel there rose 3.5 cents to a discount of 4.5 cents.
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