California Gasoline Strengthens on Rollover, Pipeline Shutdown

Spot gasoline in California strengthened against futures after the prompt-month contract began trading for April delivery and Kinder Morgan Energy Partners LP (KMP) shut a product pipeline for several hours.

Kinder Morgan shut an 8-inch (20-centimeter) product pipeline from a refinery to the company’s Concord site in the San Francisco area at 3:40 a.m. local time after an automatic valve failed to sync, overpressurizing the line. The company said it restarted the pipeline three hours later.

California-blend gasoline, or Carbob, in San Francisco strengthened 9 cents to a premium of 1 cent a gallon against the May futures contract traded on the New York Mercantile Exchange at 4:04 p.m. New York time, according to data compiled by Bloomberg. Before today, the fuel traded against April Nymex futures.

The fuel in Los Angeles narrowed the discount by 6 cents to 1 cent. BP Plc (BP/)’s Carson refinery in Southern California finished unplanned maintenance on a fluid catalytic cracker today, according to a person familiar with operations there.

Conventional, 84-octane gasoline in Portland, Oregon, strengthened by 3 cents to a 23-cent discount.

California-blend diesel in San Francisco was unchanged at 11 cents a gallon above heating oil futures on the Nymex. The fuel in Los Angeles strengthened by 3.75 cents to a premium of 3 cents a gallon.

In Portland, low-sulfur diesel strengthened by 5.75 cents to 10 cents a gallon above heating oil futures.

To contact the reporter on this story: Dan Murtaugh in Houston at

To contact the editor responsible for this story: Dan Stets at

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.