Los Angeles Gasoline Strengthens as Tesoro, Exxon Reports Upsets
Tesoro’s 170,000-barrel-a-day Golden Eagle plant in Northern California reported a small fire in a crude unit Oct. 26, a notice to Contra Costa county regulators showed. The blaze didn’t damage equipment or affect the refinery’s ability to meet supply commitments, Tina Barbee, a spokeswoman at Tesoro’s headquarters in San Antonio, said by e-mail today.
Exxon’s 150,000-barrel-a-day Torrance plant in Southern California reported a breakdown that caused emissions early today, a notice to the South Coast Air Quality Management District showed. The refinery said in a separate notice that it plans to flare gases tomorrow through Nov. 3.
The premium for California-blend gasoline, or Carbob, in Los Angeles broadened 2.25 cents to 9.5 cents a gallon versus futures traded on the New York Mercantile Exchange, the biggest differential in four days, according to data compiled by Bloomberg at 1:50 p.m. New York time. Prompt delivery slipped 0.86 cent to $2.6742 a gallon.
Carbob in San Francisco strengthened 2.25 cents against futures to a discount of 1.5 cents a gallon.
The 266,000-barrel-a-day Carson section of Tesoro’s Los Angeles refinery reported plans to flare from Nov. 1 to Nov. 7, a notice to the South Coast air agency showed. The flaring is associated with work that won’t affect the company’s ability to meet commitments, Barbee said.
The discount for conventional gasoline in Portland, Oregon, a benchmark for the U.S. Pacific Northwest, was unchanged at 13 cents a gallon below futures. Diesel in Portland was unchanged at 18.5 cents a gallon above ultra-low-sulfur diesel futures traded on the Nymex.
The discounts for California-grade, or CARB, diesel in Los Angeles and San Francisco held at 1.75 cents and 3.25 cents a gallon, respectively.
The 3-2-1 crack spread of Alaska North Slope crude, Carbob in Los Angeles and CARB diesel in Los Angeles narrowed $1.70 a barrel to $10.24. The spread, a rough indicator of refining profitability, is the smallest in more than three weeks.
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