Los Angeles Gasoline Weakens as Refineries Seen Increasing Rates

Spot gasoline in Los Angeles fell against futures for a second day as BP Plc and Tesoro Corp. were said to be preparing equipment for restart at their Southern California refineries after planned maintenance turnarounds.

Tesoro’s 97,000-barrel-a-day Wilmington refinery was expected to finish the work last week, while BP’s 266,000- barrel-a-day Carson refinery was scheduled to flare gases through Feb. 16 related to the startup of a fluid catalytic cracker and alkylation unit, according to people familiar with operations at the plants.

The premium for California-blend gasoline, or Carbob, in Los Angeles narrowed 0.5 cent to 29.5 cents a gallon versus futures traded on the New York Mercantile Exchange at 1:32 p.m. East Coast time, data compiled by Bloomberg show. Prompt delivery in Los Angeles dropped 4.05 cents to $3.3183 a gallon.

Carbob in San Francisco lost 1 cent to 8.5 cents a gallon above futures. Prompt delivery there declined 4.55 cents to $3.1083 a gallon.

Tina Barbee, a Tesoro spokeswoman at the company’s headquarters in San Antonio, said by e-mail today that the Wilmington plant was still performing planned maintenance.

San Francisco Carbob weakened 0.5 cent to a discount of 21 cents a gallon against the fuel in Los Angeles. The gap reached a record 32.5 cents a gallon on Jan. 14.

California-blend, or CARB, diesel in Los Angeles slipped 0.5 cent to an 8.5-cent-a-gallon premium to Nymex heating oil futures. The same fuel in San Francisco gained 1 cent to a premium of 11.5 cents a gallon.

In Portland, low-sulfur diesel climbed 0.5 cent to 5 cents a gallon above heating oil futures. Conventional, 84-octane gasoline there weakened 1 cent to 2 cents a gallon above gasoline futures.

Portland 84-octane gasoline’s discount to Los Angeles Carbob lost 0.5 cent to 27.5 cents a gallon. The spread reached a record 75.5 cents a gallon on Oct. 4.

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.