California Gasoline Rises to Month-High as Chevron Performs Work
Spot gasoline in California strengthened to its highest level in a month as Chevron Corp. (CVX)’s El Segundo refinery performed equipment maintenance and Exxon Mobil Corp. (XOM)’s Torrance plant finished repairs.
Chevron’s 279,000-barrel-a-day El Segundo refinery near Los Angeles shut a fluid catalytic cracker in mid-January for a maintenance turnaround. The unit, which process vacuum gasoil into gasoline and other light products, is expected to remain shut at least until the end of this month, a person with direct knowledge of the schedule said March 6.
Exxon’s 150,000-barrel-a-day Torrance refinery in Southern California was also performing repairs on a unit last week. The plant was scheduled to flare gases through March 22 related to the work, a notice to the South Coast Air Quality Management District shows.
California-blend gasoline, or Carbob, in Los Angeles advanced 4.25 cents to a premium of 3.25 cents a gallon against gasoline futures traded on the New York Mercantile Exchange at 4:20 p.m. East Coast time, according to data compiled by Bloomberg. That’s the highest level for the fuel since Feb. 26.
Carbob in San Francisco rose 4.5 cents against futures to a premium of 5.5 cents a gallon, a one-month high.
The premium for Carbob in San Francisco over Los Angeles widened 0.25 cent to 2.25 cents a gallon, the biggest spread since September and the highest for this time of year since at least 2008.
California-blend, or CARB, diesel in San Francisco dropped 6.5 cents against Nymex heating oil futures to a premium of 4.5 cents a gallon as the contract rolled into April. The fuel in Los Angeles, which began trading for April last week, strengthened 1.25 cents to 4.25 cents a gallon over futures.
In Portland, Oregon, low-sulfur diesel gained 4 cents to a premium of 14 cents a gallon over heating oil futures. Conventional, 84-octane gasoline’s discount to futures narrowed 4 cents to 19 cents a gallon.
The 3-2-1 crack spread of Alaska North Slope crude, Carbob in Los Angeles and CARB diesel in Los Angeles gained a fourth day, increasing 43 cents to $17.33 a barrel at 4:23 p.m. New York time, a two-week high.
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