Los Angeles Gasoline Gains to 2-Week High on Plant Work
Los Angeles gasoline rose to a two-week high against futures as Tesoro Corp. (TSO) was said to extend work at the Carson section of its Southern California refinery and plan a January shutdown at the Wilmington plant.
The fuel advanced after a person familiar with plant operations discussed the work at the 266,000-barrel-a-day Carson complex. Repairs to a hydrotreater that were scheduled to be finished by Nov. 28 are now expected to be complete next week, said the person, who asked not to be identified because the information isn’t public.
California-blend gasoline, or Carbob, in Los Angeles gained 2.5 cents to a premium of 4.5 cents a gallon against futures traded on the New York Mercantile Exchange at 2:15 p.m. East Coast time, the highest level since Nov. 11, data compiled by Bloomberg show. Retail gasoline in California gained 0.2 cent to $3.563 a gallon, said Heathrow, Florida-based AAA.
Tina Barbee, a spokeswoman at Tesoro’s headquarters in San Antonio, said by e-mail today that the Carson refinery is performing “planned maintenance activities.”
Los Angeles gasoline surged 5 cents a gallon versus futures yesterday after the 97,000-barrel-a-day Wilmington section of Tesoro’s Los Angeles complex was said to plan a hydrocracker shutdown in January. The work is expected to last about six weeks, said a person familiar with the schedule who asked not to be identified because the information isn’t public.
Tesoro’s 170,000-barrel-a-day Golden Eagle refinery in Northern California has completed planned work, Barbee said today. The plant had begun repairs on the hydrocracker last month and was expected to return it to service this week, a person familiar with the maintenance said Nov. 13.
The 3-2-1 crack spread of Alaska North Slope crude, Carbob in Los Angeles and state-grade diesel in Los Angeles, an indicator of refining profitability in the western U.S., widened for the first time in three days, adding $1.54 a barrel to $12.14 at 3:36 p.m. New York time, according to data compiled by Bloomberg.
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