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West Coast Gasoline Strengthens on Refinery Maintenance, Issues

Dec. 3 (Bloomberg) -- Spot gasoline on the West Coast rose after Tesoro Corp. said it plans maintenance on portions of its Wilmington refinery next week and after a unit shut down at Valero Energy Corp.’s Benicia refinery this week.

Tesoro’s planned maintenance at its 97,000-barrels-a-day Wilmington refinery will take place starting Dec. 5 through Dec. 7, spokesman Mike Marcy said in an e-mail, declining to provide details on which units are involved.

Valero restarted a fluid catalytic cracker at its Benicia plant in northern California after it tripped offline, Bill Day, a company spokesman, said in an e-mail.

The premium for California-blend gasoline, or Carbob, in Los Angeles climbed 1.5 cents to 12.5 cents a gallon versus January-delivery futures traded on the New York Mercantile Exchange as of 2:21 p.m. New York time, according to data compiled by Bloomberg. Prompt delivery of the fuel rose 2.12 cents to $2.4865 a gallon.

Carbob’s premium in San Francisco gained 4 cents to 10.5 cents a gallon. The prompt price advanced 4.62 cents to $2.4665 a gallon.

Chicago Gasoline

The discount for conventional, 87-octane gasoline in Chicago narrowed 3 cents to 9.5 cents a gallon as of 2:30 p.m. New York time. The grade advanced 2.65 cents to $2.2568 a gallon.

The grade climbed after Buckeye Partners LP shut an 8-inch oil products line after a leak was discovered in Illinois and expects to have it back in service in the “near term,” according to a company official.

“The line is shut down until we feel we can safely restart it,” Jerry Ashcroft, Buckeye’s vice president of operations, said in an e-mailed statement.

The line, which runs from East St. Louis to Chicago, is being drained to allow for repairs.

The discount for conventional, 87-octane gasoline on the Gulf Coast narrowed 0.3 cent to 5.08 cents a gallon as of 2:14 p.m. New York time. The grade rose 0.58 cent to $2.3074 a gallon.

The premium for the same fuel in New York narrowed 1.5 cents to 6.75 cents a gallon. The grade dropped 1.82 cents to $2.4196.

Gasoline for January delivery fell 0.32 cent to settle at $2.3521 a gallon on the Nymex.

To contact the reporters on this story: Samantha Zee in San Francisco at; Paul Burkhardt in New York at

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

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