San Francisco Diesel Climbs After Tesoro Said to Cut Coker Rates
Spot diesel in San Francisco gained for a second day against futures after Tesoro Corp. (TSO) was said to cut production from a coker at the Golden Eagle refinery after a weekend fire.
The 170,000-barrel-a-day plant is working to repair a compressor associated with the coker that was damaged Oct. 21, a person with direct knowledge of the incident said yesterday. Cokers convert heavy refinery streams, such as vacuum bottoms, into lighter products such as naphtha and heating oil.
Tina Barbee, a spokeswoman at Tesoro’s headquarters in San Antonio, declined to comment on the status of the unit. The company doesn’t “anticipate any impact to product supply commitments,” she said by e-mail yesterday.
California-grade, or CARB, diesel in San Francisco gained 0.5 cent to 2 cents a gallon against heating oil futures traded on the New York Mercantile Exchange at 3:54 p.m. East Coast time, data compiled by Bloomberg show.
Phillips 66 (PSX) is performing maintenance on hydrocrackers, which break down heavy feedstocks into light products such as diesel, at its two California refineries, people familiar with the schedules said. The company’s Los Angeles-area refinery was restoring operations after a power failure in the Wilmington section today, a person with knowledge of the incident said.
CARB diesel inventories dropped 12 percent last week to 2.49 million barrels, the lowest in a month, the state Energy Commission said on its website.
The fuel in Los Angeles fell 1 cent to a premium of 6.5 cents a gallon against futures.
California-blend gasoline, or Carbob, in Los Angeles tumbled 3 cents to 9 cents a gallon above Nymex gasoline futures. The same fuel in San Francisco also fell 3 cents to a discount of 0.5 cents a gallon versus futures.
Carbob supplies jumped 19 percent in the week ended Oct. 19 to 5.78 million barrels, the highest level since March, the state Energy Commission said. Production of the fuel rose 4.4 percent to 7.05 million, the agency said.
Conventional 84 sub-octane gasoline to be blended with ethanol in Portland, Oregon, weakened 2.5 cents to 16 cents a gallon below gasoline futures. Low-sulfur diesel in Portland slipped 0.5 cent to 2.5 cents a gallon under heating oil futures, the lowest level since February.
Gasoline inventories on the U.S. West Coast, known as the Padd 5 region, climbed 6.4 percent to 28 million barrels, the highest level since April, the Energy Department said. Low- sulfur diesel fuel supplies in the region slipped 2 percent to 11.7 million barrels.
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