California Gasoline Drops as Chevron Starts Richmond Crude Unit
Spot gasoline in California weakened against futures after Chevron Corp. (CVX) said the crude unit at the Richmond refinery was processing oil and that the El Segundo plant returned to normal operation after repairs.
The 240,000-barrel-a-day Richmond refinery put oil this week into its only crude unit, shut after a fire Aug. 6, and will bring other equipment at the plant to capacity in “the coming days,” Jeff Gustavson, Chevron’s general manager of investor relations, said in an earnings conference call today.
The 279,000-barrel-a-day El Segundo refinery near Los Angeles resumed normal rates after maintenance that began in February, Pat Yarrington, the San Ramon, California-based company’s chief financial officer, said in the call.
California-blend gasoline, or Carbob, in Los Angeles dropped 6.5 cents versus futures traded on the New York Mercantile Exchange to a premium of 10.5 cents a gallon at 1:57 p.m. East Coast time, according to data compiled by Bloomberg. The same fuel in San Francisco weakened 4.5 cents to 22.5 cents a gallon above futures.
The premium for Carbob in San Francisco versus the fuel in Los Angeles widened 2 cents to 12 cents a gallon, the highest level in four days.
California-blend, or CARB, diesel in Los Angeles was unchanged against ultra-low-sulfur diesel futures on the Nymex at a discount of 1.25 cent a gallon. CARB diesel in San Francisco held at 4 cents a gallon below futures.
The 3-2-1 crack spread of Alaska North Slope crude, Carbob in Los Angeles and CARB diesel in Los Angeles narrowed for the first time in three days, shrinking $1.24 to $17.07 a barrel. The spread, a rough indicator of refinery margins, is down 41 percent from this year’s high of $29.09 a barrel on Feb. 5.
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