Los Angeles Gasoline Weakens as Refinery Continues to Operate
Los Angeles gasoline weakened after Chevron Corp. (CVX) said many units at its El Segundo refinery were operating after a power failure Jan. 13 resulted a slowdown.
The power failure was caused by an “incident” in a process unit while workers were preparing to take it down for planned maintenance, Rod Spackman, an El Segundo, California- based company spokesman, said yesterday. The refinery is running normally aside from the planned maintenance and the incident is not expected to affect the refinery’s ability to supply customers, he said.
California-blend gasoline, or Carbob, in Los Angeles weakened 9.5 cents to a premium of 5 cents a gallon more than futures traded on the New York Mercantile Exchange, according to data compiled by Bloomberg. The differential shot up 14 cents yesterday, the largest gain since Oct. 4.
The fuel in San Francisco strengthened 2 cents to a 16- cents-a-gallon discount to New York futures. Tesoro Corp. (TSO) shut a hydrotreater and reformer over the weekend at its Golden Eagle refinery in Northern California, a person with direct knowledge of operations at the plant said today.
California-blend diesel in Los Angeles remained unchanged at a premium of 7.25 cents a gallon above heating oil futures on the Nymex. The fuel in San Francisco weakened 1 cent to 2.5 cents a gallon below futures. Low-sulfur diesel in Portland strengthened 2 cents to a discount of 3.5 cents.
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