Jan. 22 (Bloomberg) -- Los Angeles gasoline gained against futures on speculation that plant repairs in Southern California will cut supplies in the market.
Gasoline’s discount narrowed as Air Products & Chemicals Inc. said it was preparing for maintenance at the Carson, California, hydrogen plant “in coordination with a key customer.” The Carson complex, which supplies hydrogen to refineries in the Los Angeles area to fuel process units, is expected to restart in mid-February, Art George, a company spokesman in Allentown, Pennsylvania, said by e-mail today.
California-blend gasoline, or Carbob, in Los Angeles strengthened 1 cent versus futures traded on the New York Mercantile Exchange to a discount of 5 cents a gallon, according to data compiled by Bloomberg at 4:20 p.m. East Coast time. The prompt-delivery price jumped 6.05 cents to $2.6271 a gallon, a two-week high.
Tesoro Corp.’s Wilmington plant, part of the company’s 363,000-barrel-a-day Los Angeles refinery system, is scheduled to shut a hydrocracker this month for about six weeks of work, people familiar with the maintenance said Nov. 25, asking not to be identified because the information isn’t public.
Carbob in San Francisco was unchanged against futures at a discount of 10 cents a gallon. Los Angeles Carbob’s premium over San Francisco widened 1 cent to 5 cents a gallon.
Tesoro’s 170,000-barrel-a-day Golden Eagle refinery in Northern California is performing unscheduled repairs, Tina Barbee, a spokeswoman at the company’s headquarters in San Antonio, said by e-mail today.
California-grade, or CARB, diesel in Los Angeles strengthened 7.5 cents against ultra low sulfur diesel futures on the Nymex to a discount of 0.5 cent a gallon, the highest level since October. Jet fuel in Los Angeles gained 3.5 cents to 12.5 cents a gallon under ULSD futures.
Retail gasoline in California slipped 0.2 cent to $3.595 a gallon, according to Heathrow, Florida-based AAA. Diesel jumped 0.7 cent to $4.072 a gallon.
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, widened 40 cents to $9.95 a barrel.
Conventional, 87-octane gasoline in Portland, Oregon, a benchmark for the U.S. Pacific Northwest, strengthened 7 cents versus Nymex gasoline futures to a discount of 8 cents a gallon. Low sulfur diesel there weakened 1.5 cents against ULSD futures to a discount of 9 cents.
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