Los Angeles Gasoline Drops as Exxon Restarts Torrance Units

Spot gasoline in Los Angeles dropped after Exxon Mobil Corp. said it returned units to service at its refinery in Torrance, southern California.

A Nov. 24 power failure and a subsequent mechanical issue shut some units of the refinery, curbing production. Plant operations at the 155,800-barrel a-day refinery have returned to normal, Aarti Ramachandran, a company spokeswoman, said in a telephone interview yesterday.

Planned flaring at Torrance from today through Dec. 3 isn’t related to the issues last week and won’t affect production, said Barbara Burgett, a refinery spokeswoman.

The premium for California-blend gasoline, or Carbob, in Los Angeles dropped 1.25 cents to 7.5 cents a gallon versus January-delivery futures traded on the New York Mercantile Exchange as of 4:10 p.m. New York time, according to data compiled by Bloomberg. Prompt delivery of the fuel rose 10.11 cents to $2.3754 a gallon.

Carbob’s premium in San Francisco was unchanged at 5.75 cents a gallon. The prompt price advanced 11.36 cents to $2.3579 a gallon.

The premium for conventional, 87-octane gasoline in Portland added 2.5 cents to 7.5 cents as the grade advanced 6.02 cents to $2.3754.

The discount for conventional, 87-octane gasoline on the Gulf Coast narrowed 0.62 cent to 4.75 cents a gallon as of 4:20 p.m. New York time. The grade advanced 10.73 cents to $2.2529 a gallon.

The premium to January futures for the same fuel in New York widened 4.5 cents to 6 cents a gallon. The grade climbed 8.02 cents to $2.3604.

Gasoline for January delivery gained 11.36 cents, or 5.2 percent, to settle at $2.3004 a gallon on the Nymex, the highest settlement for the front-month contract since May 4.

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