Diesel in San Francisco advanced to the highest level in two weeks as Tesoro Corp. performed repairs on the hydrocracker at its Golden Eagle refinery in Northern California.
The 170,000-barrel-a-day Golden Eagle plant began pulling feed from the hydrocracker, which converts heavy hydrocarbons into lighter fuels such as high-grade fuel oil, on Oct. 2 for maintenance that’s expected to last about six weeks, according to a person familiar with the work who asked not to be identified because the information isn’t public.
The discount for California-grade, or CARB, diesel in San Francisco narrowed 1.25 cents versus ultra-low-sulfur diesel futures traded on the New York Mercantile Exchange to 0.5 cent a gallon, the smallest gap since Sept. 23, according to data compiled by Bloomberg at 3:57 p.m. New York time.
Ultra-low-sulfur diesel in Portland, Oregon, a benchmark for the U.S. Pacific Northwest jumped 4 cents to 5.5 cents a gallon over futures, the biggest premium in more than four months.
Suncor Energy Inc. was experiencing a diesel supply shortage in parts of western Canada last week, Nicole Fisher, a spokeswoman at the company’s headquarters in Calgary, said by e-mail Oct. 2. The company was “working to minimize the impact” on customers by obtaining supply elsewhere, she said.
Suncor’s Fort McMurray oil-sands complex in Alberta finished planned repairs on the vacuum unit at one of its two upgraders, the company said in a statement on its website today. Work on the No. 2 upgrader began Sept. 4, according to the statement.
Suncor’s 140,000-barrel-a-day Edmonton refinery in Alberta runs entirely on oil sands-based feedstocks, the company’s website shows.