Los Angeles Gasoline Premium Gains as Refinery Work Extended

California-blend gasoline in Los Angeles rose amid reports that a gasoline-making unit at California’s largest oil refinery will be shut longer than expected.

California-blend gasoline, or Carbob, in Los Angeles rose 2 cents to a premium of 7 cents a gallon versus gasoline futures traded on the New York Mercantile Exchange at 4:06 p.m. New York time, according to data compiled by Bloomberg.

Chevron Corp.’s El Segundo plant shut the fluid catalytic cracker, which processes vacuum gasoil into gasoline and other products, for repairs in October, two people with knowledge of the work said Nov. 21. The outage was extended for at least another week after workers found more damage, said the people, who declined to be identified because the information isn’t public.

“The FCC work is limping along at El Segundo,” said Bob Van Der Valk, an independent fuel analyst in Terry, Montana. A notice filed with regulators today stating BP Plc’s Carson refinery will flare from Nov. 27 to Dec. 27 may indicate maintenance at the plant, Van Der Valk said.

Inventories Rise

Gasoline inventories in the state rose 3 percent last week from a week earlier to 6.12 million barrels, according to state Energy Commission. Stockpiles of California-blend gasoline gained 2 percent to 5.2 million barrels.

Carbob in San Francisco gained 0.5 cent to a premium of 3.5 cents.

California-blend diesel in San Francisco climbed 1.75 cents to a premium of 1.75 cents above heating oil futures traded on the Nymex. The same fuel in Los Angeles rose 2 cents to a premium of 3.75 cents.

Conventional, 87-octane gasoline in Portland, Oregon, fell 2.75 cents to a discount of 3.75 cents to futures.

To contact the reporter on this story: Gene Laverty in Calgary at glaverty@bloomberg.net

To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net

Bloomberg reserves the right to edit or remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.