Los Angeles Gasoline Drops as BP Cracker Runs Through Repairs

Spot gasoline in Los Angeles weakened against futures as BP Plc (BP/) kept a catalytic cracker at the Carson refinery in Southern California running during repairs on a hydrotreater.

The hydrotreater, which removes impurities from refined products and feeds into the catalytic cracker, was shut after a hydrogen leak, a person with direct knowledge of the situation said yesterday. Work on the unit was expected to be brief, and the cracker will remain operating, a person familiar with operations there said today.

California-blend gasoline, or Carbob, in Los Angeles fell 3.88 cents to a discount of 1 cent a gallon against futures traded on the New York Mercantile Exchange at 4:08 p.m. New York time, data compiled by Bloomberg show. The fuel jumped 7.13 cents yesterday after the 266,000-barrel-a-day Carson refinery reported flaring that may last through Dec. 4.

Carbob in San Francisco tumbled 7.87 cents to 16 cents a gallon below futures, the lowest level since June.

California-grade diesel, or CARB, in Los Angeles fell 1.5 cents to 1.5 cents a gallon under Nymex heating oil futures. The same fuel in San Francisco gained 1.5 cents to a discount of 0.5 cent versus futures.

Conventional 84 sub-octane gasoline to be blended with ethanol in Portland, Oregon, rose 1.5 cents to 5.5 cents a gallon under gasoline futures. Low-sulfur diesel there dropped 6 cents to a discount of 0.5 cent against heating oil futures.

BP’s 234,000-barrel-a-day Cherry Point refinery in Washington state was operating normally after reporting a compressor upset to state regulators yesterday, a person familiar with operations there said.

To contact the reporter on this story: Lynn Doan in San Francisco at ldoan6@bloomberg.net

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

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to 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.