Los Angeles Gasoline Strengthens as Inventories Decline
The premium for Los Angeles gasoline widened versus futures for the first time in three days as Tesoro Corp. (TSO) performed work at its Southern California refinery and Exxon Mobil Corp. (XOM) reported planned flaring.
Gasoline gained as Tesoro’s 363,000-barrel-a-day Los Angeles refinery performed scheduled maintenance that may cause the Carson section of the complex to flare gases until Nov. 7.
Exxon’s 150,000-barrel-a-day Torrance refinery plans to flare gases from tomorrow through Nov. 10 associated with tank maintenance, Gesuina Paras, a spokeswoman at the refinery, said by telephone today.
The premium for California-blend gasoline, or Carbob, in Los Angeles gained 0.75 cent to 12.25 cents a gallon versus futures traded on the New York Mercantile Exchange, according to data compiled by Bloomberg at 4:11 p.m. New York time. Prompt delivery slipped 0.97 cent to $2.6507 a gallon.
Tesoro’s Los Angeles refinery is performing maintenance amid gasoline supplies at a five-month low on the U.S. West Coast. Regional output of the motor-fuel slipped to a three-week low in the seven days ended Oct. 25, according to the Energy Information Administration, the Energy Department’s statistical arm.
Carbob in San Francisco strengthened 0.5 cent a gallon versus futures to a premium of 2 cents.
The 3-2-1 crack spread of Alaska North Slope crude, Carbob in Los Angeles and state-grade diesel in Los Angeles narrowed 22 cents to $12.13 a barrel.
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