Los Angeles Gasoline Gains as Chevron Prepares for Crude Repairs
Spot gasoline in Los Angeles strengthened against futures as Chevron Corp. (CVX) was said to be planning repairs on a crude unit next month and a turnaround on another unit in August.
Chevron’s 279,000-barrel-a-day El Segundo plant, the largest in California, will shut the No. 4 crude unit in July for short-term work, a person familiar with the schedule said June 13. The No. 2 crude unit will be brought down in August for weeks-long maintenance, the person said.
California-blend gasoline, or Carbob, in Los Angeles rose 4.5 cents to a premium of 26.5 cents a gallon against gasoline futures traded on the New York Mercantile Exchange at 1:41 p.m. New York time, data compiled by Bloomberg show. Prompt-delivery rose 2.44 cents to $3.1411 a gallon.
The same fuel in San Francisco advanced 5.5 cents to a premium of 16.5 cents a gallon.
The discount for San Francisco Carbob versus the same fuel in Los Angeles narrowed for the first time in four days, to 10 cents a gallon.
Retail gasoline in the state fell 0.1 cent to $3.983 a gallon, Heathrow, Florida-based AAA, the nation’s largest motoring organization, said today on its website. Prices at the pump are down from $3.998 a gallon a year ago.
The premium for spot, conventional gasoline in Portland, Oregon, a benchmark for the U.S. Pacific Northwest, gained for the fifth straight day, widening 1 cent to 13 cents a gallon. That’s the fuel’s highest level in more than three weeks.
Portland gasoline’s discount to Los Angeles Carbob added 3.5 cents to 13.5 cents a gallon.
Kinder Morgan Canada restarted the 300,000-barrel-a-day Trans-Mountain pipeline at 80 percent pressure on June 14 after repairing a leak discovered June 12. The company hasn’t said when the pressure restriction will be lifted on the line, which carries oil and refined products from Edmonton, Alberta, to the central British Columbia region, greater Vancouver and the Puget Sound area in Washington.
“We will be discussing our go-forward plans with the National Energy Board,” the Canadian regulator, Andrew Galarnyk, a spokesman for Kinder Morgan Canada in Calgary, said by e-mail today.
The 3-2-1 crack spread of Alaska North Slope crude, Carbob in Los Angeles and CARB diesel in Los Angeles dropped $1.77 to $22.47 a barrel at 2 p.m. New York time, the lowest level in a week. The spread, a rough measure of refining profits, reached a three-month high of $26.35 a barrel on June 11.
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