Los Angeles Gasoline Jumps to 12-Week High After Plant Breakdown

Gasoline on the spot market in Los Angeles surged to the highest level since June after Exxon Mobil Corp. (XOM) reported a breakdown at the Torrance refinery.

California-blend, or Carbob, gasoline in Los Angeles strengthened by 14.5 cents to a premium of 51 cents a barrel more than futures traded on the New York Mercantile Exchange at 3:20 p.m., according to data compiled by Bloomberg. It’s the highest level since June 20.

Exxon began flaring gases related to an upset at the 150,000-barrel-a-day Southern California plant at 10:45 a.m. local time, according to a filing with the South Coast Air Quality Management District.

Carbob in San Francisco strengthened by 8.5 cents to a premium of 57.5 cents a barrel versus futures, the highest level since October. Conventional, 84-octane gasoline in Portland, Oregon, slid 3 cents to a 21-cent-a-gallon premium.

California-blend diesel in Los Angeles weakened by 0.5 cent to a 2.75-cent-a-gallon premium to ultra-low-sulfur diesel futures on the Nymex. The fuel in San Francisco weakened by 0.5 cent to a premium of 6.5 cents.

California-blend diesel supplies surged by 34 percent to 2.47 million barrels last week, the California Energy Commission reported yesterday.

Low-sulfur diesel in Portland was unchanged at 1.25 cents a gallon more than New York futures.

To contact the reporter on this story: Dan Murtaugh in Houston at dmurtaugh@bloomberg.net

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

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