San Francisco Diesel Gains as Tesoro Performs Hydrocracker Work
Diesel in San Francisco advanced to the highest level in two weeks as Tesoro Corp. (TSO) performed repairs on the hydrocracker at its Golden Eagle refinery in Northern California.
The 170,000-barrel-a-day Golden Eagle plant began pulling feed from the hydrocracker, which converts heavy hydrocarbons into lighter fuels such as high-grade fuel oil, on Oct. 2 for maintenance that’s expected to last about six weeks, according to a person familiar with the work who asked not to be identified because the information isn’t public.
The discount for California-grade, or CARB, diesel in San Francisco narrowed 1.25 cents versus ultra-low-sulfur diesel futures traded on the New York Mercantile Exchange to 0.5 cent a gallon, the smallest gap since Sept. 23, according to data compiled by Bloomberg at 3:57 p.m. New York time.
Suncor Energy Inc. (SU) was experiencing a diesel supply shortage in parts of western Canada last week, Nicole Fisher, a spokeswoman at the company’s headquarters in Calgary, said by e-mail Oct. 2. The company was “working to minimize the impact” on customers by obtaining supply elsewhere, she said.
Suncor’s Fort McMurray oil-sands complex in Alberta finished planned repairs on the vacuum unit at one of its two upgraders, the company said in a statement on its website today. Work on the No. 2 upgrader began Sept. 4, according to the statement.
Suncor’s 140,000-barrel-a-day Edmonton refinery in Alberta runs entirely on oil sands-based feedstocks, the company’s website shows.
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