Los Angeles Gasoline Strengthens After BP Refinery Loses PowerLynn Doan
Spot gasoline in Los Angeles gained against futures to the highest level in more than three months after BP Plc reported a power failure at the Carson refinery, the second-largest in California.
BP’s 266,000-barrel-a-day Carson plant had the power failure over the weekend after a compressor tripped off-line, a person familiar with operations there said today. Two units shut and have since been restarted, the person said.
California-blend gasoline, or Carbob, in Los Angeles strengthened 3.5 cents to 29.5 cents a gallon above gasoline futures traded on the New York Mercantile Exchange at 4:22 p.m. East Coast time, data compiled by Bloomberg show. That’s the highest level for the fuel since Oct. 12. Prompt-delivery in Los Angeles rose 8.61 cents to $3.2359 a gallon.
Valero Energy Corp.’s 78,000-barrel-a-day Wilmington refinery near Los Angeles plans to shut the fluid catalytic cracker and the alkylation unit for repairs on a depropanizer beginning Feb. 4, a person familiar with the plans said Jan. 25. The equipment is scheduled to restart Feb. 16, the person said.
Carbob in San Francisco increased 12 cents to a premium of 7 cents a gallon against futures. Prompt-delivery of the fuel rose 17.11 cents to $3.0109 a gallon. The premium of Los Angeles Carbob to the fuel narrowed 8.5 cents to 22.5 cents a gallon.
California-blend, or CARB, diesel in Los Angeles rose 1 cent to an 8.5-cent premium to Nymex heating oil futures. The same fuel in San Francisco advanced 4.5 cents to a premium of 11 cents a gallon against futures.
In Portland, low-sulfur diesel narrowed its discount by 10 cents to 1 cent a gallon against heating oil futures. Conventional, 84-octane gasoline there gained 10.75 cents to a discount of 4.25 cents to gasoline futures.