California-blend diesel in Los Angeles strengthened to the highest level against futures in almost two weeks after BP Plc reported planned flaring at the state’s second-largest oil refinery.
London-based BP is scheduled to flare gases at the 266,000-barrel-a-day Carson refinery in Southern California through March 29, according to a notice the company filed with air regulators yesterday. Tesoro Corp. is also scheduled to flare at the 97,000-barrel-a-day Wilmington refinery through tomorrow because of planned maintenance.
California-blend diesel, or CARB diesel, in Los Angeles increased for the second day, by 0.75 cent to a premium of 14 cents against heating oil futures traded on the New York Mercantile Exchange at 4:33 p.m. East Coast time, according to data compiled by Bloomberg. That’s the highest level for the fuel since March 13.
The same fuel in San Francisco rose 1.5 cents to a 12.5 cent premium versus futures.
CARB diesel supplies fell to the lowest level so far this year in the week ended March 16, slipping 0.7 percent to 2.36 million barrels from a week earlier, according to the state Energy Commission.
BP’s Carson refinery began a maintenance turnaround a week ago, a person familiar with the plant’s operations said March 19. Daren Beaudo, a BP spokesman in Houston, declined in an e-mail today to comment on the work or the flaring notice.
California-blend, or Carbob, gasoline in Los Angeles weakened 1.5 cents to a premium of 0.5 cent against Nymex gasoline futures. The same fuel in San Francisco also fell 1.5 cents to a 1.5-cent discount versus futures.
Tesoro finished a turnaround at the 170,000-barrel-a-day Golden Eagle refinery in Northern California last week, Tina Barbee, a spokeswoman at the company’s headquarters in San Antonio, said in an e-mail. Process units were operating at targeted rates, she said.
Conventional, 87-octane gasoline in Portland, Oregon, was unchanged at a 7-cent premium to gasoline futures.