Los Angeles Diesel Gains to Two-Week High as Refineries Flare
Tesoro’s 266,000-barrel-a-day Carson plant reported flaring after a compressor trip yesterday, a notice to state regulators shows. Phillips 66’s 139,000-barrel-a-day Los Angeles refinery also reported flaring in the Carson section of the complex, a separate notice showed.
California-grade, or CARB, diesel in Los Angeles strengthened 2.5 cents to a premium of 3.75 cents a gallon against ultra-low-sulfur diesel futures traded on the New York Mercantile Exchange at 3:32 p.m., data compiled by Bloomberg show. That’s the highest level for the fuel since July 15. Prompt-delivery gained 1.5 cents to $3.0465 a gallon.
CARB diesel in San Francisco jumped 2.75 cents to 4 cents a gallon above futures, also a two-week high.
The Carson section of Phillips 66 (PSX)’s Los Angeles refinery serves as the “front end,” initially processing the crude oil, according to the company’s website. Rich Johnson, a spokesman at the company’s headquarters in Houston, said by e-mail yesterday that the plant isn’t performing planned work.
Tina Barbee, a spokeswoman at Tesoro headquarters in San Antonio, didn’t immediately respond to an e-mailed request for comment.
Conventional, 87-octane gasoline in Portland gained 4 cents against gasoline futures on the Nymex to a premium of 9.5 cents a gallon, while California-blend gasoline, or Carbob, in Los Angeles slid 4.5 cents to 4.5 cents a gallon below futures.
Retail gasoline in California slipped 0.5 cent to $3.994 a gallon, Heathrow, Florida-based AAA, the nation’s largest motoring organization, said today on its website.
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