Premium for Gasoline in San Francisco Strengthens a Third Day
Spot gasoline in San Francisco gained against futures for a third day after a hydrocracker shutdown at Tesoro Corp.’s Golden Eagle refinery was seen cutting supplies in Northern California.
California-blend gasoline, or Carbob, inventories and blendstocks in the region dropped in the week ended Feb. 8 to the lowest level in a month, the state Energy Commission said Feb. 15. Stockpiles in the Los Angeles area, meanwhile, increased for the first time in four weeks.
The 170,000-barrel-a-day Golden Eagle refinery restarted the hydrocracker, which converts heavy hydrocarbons into lighter fuels such as high-octane gasoline, last week after at least seven days of unplanned repairs, a person with direct knowledge of the work said Feb. 12.
The premium for Carbob in San Francisco widened 0.5 cent to 7 cents a gallon against gasoline futures traded on the New York Mercantile Exchange at 3:57 p.m. East Coast time, data compiled by Bloomberg show. Prompt delivery fell 0.83 cent to $3.1912 a gallon.
The premium for Carbob in Los Angeles was unchanged at 31.5 cents a gallon against futures. Prompt delivery slipped 1.33 cents to $3.4362 a gallon.
The spread between Los Angeles and San Francisco Carbob narrowed 0.5 cent to 24.5 cents a gallon, the smallest gap since Feb. 11. San Francisco Carbob traded a record 32.5 cents a gallon below Los Angeles on Jan. 14.
California-blend, or CARB, diesel in Los Angeles fell 0.75 cent against Nymex heating oil futures to a 10.25-cent-a-gallon premium, the first decline in five days. The same fuel in San Francisco slipped 0.5 cent versus futures to a premium of 11.5 cents a gallon, the lowest in a week.
In Portland, Oregon, the premium for low-sulfur diesel against futures was unchanged at 4.5 cents a gallon. Conventional, 84-octane gasoline also held against gasoline futures at a premium of 3 cents a gallon.
The spread between Portland 84-octane gasoline and Los Angeles Carbob was unchanged at 28.5 cents a gallon. Portland traded at a record discount of 75.5 cents a gallon versus Los Angeles on Oct. 4.
The 3-2-1 refinery crack spread of Alaskan North Slope crude, Carbob in Los Angeles and CARB diesel in Los Angeles narrowed for the first time in six days, losing $1.455 to $27.007 a barrel at 4:11 p.m. New York time.
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