California Gasoline Strengthens on Rollover, Pipeline Shutdown
Spot gasoline in California strengthened against futures after the prompt-month contract began trading for April delivery and Kinder Morgan Energy Partners LP (KMP) shut a product pipeline for several hours.
Kinder Morgan shut an 8-inch (20-centimeter) product pipeline from a refinery to the company’s Concord site in the San Francisco area at 3:40 a.m. local time after an automatic valve failed to sync, overpressurizing the line. The company said it restarted the pipeline three hours later.
California-blend gasoline, or Carbob, in San Francisco strengthened 9 cents to a premium of 1 cent a gallon against the May futures contract traded on the New York Mercantile Exchange at 4:04 p.m. New York time, according to data compiled by Bloomberg. Before today, the fuel traded against April Nymex futures.
The fuel in Los Angeles narrowed the discount by 6 cents to 1 cent. BP Plc (BP/)’s Carson refinery in Southern California finished unplanned maintenance on a fluid catalytic cracker today, according to a person familiar with operations there.
California-blend diesel in San Francisco was unchanged at 11 cents a gallon above heating oil futures on the Nymex. The fuel in Los Angeles strengthened by 3.75 cents to a premium of 3 cents a gallon.
In Portland, low-sulfur diesel strengthened by 5.75 cents to 10 cents a gallon above heating oil futures.
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