West Coast Gasoline Strengthens on Refinery Maintenance, Issues
Spot gasoline on the West Coast rose after Tesoro Corp. said it plans maintenance on portions of its Wilmington refinery next week and after a unit shut down at Valero Energy Corp.’s Benicia refinery this week.
Tesoro’s planned maintenance at its 97,000-barrels-a-day Wilmington refinery will take place starting Dec. 5 through Dec. 7, spokesman Mike Marcy said in an e-mail, declining to provide details on which units are involved.
Valero restarted a fluid catalytic cracker at its Benicia plant in northern California after it tripped offline, Bill Day, a company spokesman, said in an e-mail.
The premium for California-blend gasoline, or Carbob, in Los Angeles climbed 1.5 cents to 12.5 cents a gallon versus January-delivery futures traded on the New York Mercantile Exchange as of 2:21 p.m. New York time, according to data compiled by Bloomberg. Prompt delivery of the fuel rose 2.12 cents to $2.4865 a gallon.
Carbob’s premium in San Francisco gained 4 cents to 10.5 cents a gallon. The prompt price advanced 4.62 cents to $2.4665 a gallon.
The discount for conventional, 87-octane gasoline in Chicago narrowed 3 cents to 9.5 cents a gallon as of 2:30 p.m. New York time. The grade advanced 2.65 cents to $2.2568 a gallon.
The grade climbed after Buckeye Partners LP shut an 8-inch oil products line after a leak was discovered in Illinois and expects to have it back in service in the “near term,” according to a company official.
“The line is shut down until we feel we can safely restart it,” Jerry Ashcroft, Buckeye’s vice president of operations, said in an e-mailed statement.
The line, which runs from East St. Louis to Chicago, is being drained to allow for repairs.
The discount for conventional, 87-octane gasoline on the Gulf Coast narrowed 0.3 cent to 5.08 cents a gallon as of 2:14 p.m. New York time. The grade rose 0.58 cent to $2.3074 a gallon.
The premium for the same fuel in New York narrowed 1.5 cents to 6.75 cents a gallon. The grade dropped 1.82 cents to $2.4196.
Gasoline for January delivery fell 0.32 cent to settle at $2.3521 a gallon on the Nymex.
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