Los Angeles gasoline rose to a one-month high relative to New York futures as Tesoro Corp. (TSO) performed unplanned work at a Southern California refinery and prepared to begin maintenance at another.
California-blend gasoline, or Carbob, in Los Angeles climbed 5 cents to 0.5 cent a gallon below futures on the New York Mercantile Exchange at 4:15 p.m., the strongest level since Nov. 26, according to data compiled by Bloomberg.
Tesoro carried out unscheduled repairs on a No. 2 reformer at its Carson refinery while preparing to shut a hydrocracker for six weeks of planned work at its Wilmington plant in January. The two sites, both part of the company’s Los Angeles complex, have a combined capacity of 363,000 barrels a day.
Phillips 66 planned to flare gases from Dec. 22 to Dec. 24 at its 139,000-barrel-a-day Los Angeles refinery, according to a filing with the South Coast Air Quality Management. The plant restarted alkylation and hydrogen units last week following repairs, according to a person familiar with the work who asked not to be identified because the information wasn’t public.
Rich Johnson, a Phillips 66 (PSX) spokesman based in Houston, said there’s no unplanned work under way at the refinery.
Carbob in San Francisco added 0.5 cent to a discount of 9 cents a gallon versus Nymex futures, the strongest since Nov. 20. California-grade, or CARB, diesel in the region slid 0.75 cent to a discount of 8 cents a gallon, while the same fuel in Los Angeles dropped 0.25 cent to 3 cents below futures.
The 3-2-1 crack spread, assuming two barrels of Carbob gasoline and one barrel of CARB diesel in Los Angeles is refined out of three barrels of Alaska North Slope crude, gained 10.6 cents to $12.03 a barrel at 4:37 p.m. New York time.
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