Los Angeles Gasoline Weakens as BP Recovers From Power FailureLynn Doan
Spot gasoline in Los Angeles weakened against futures for the first time in a week after BP Plc was said to have restored operations at two refinery units knocked out of service after a power failure.
BP restarted the units at the 266,000-barrel-a-day Carson refinery, California’s second-largest, which lost power over the weekend after a compressor tripped offline, a person familiar with operations there said yesterday.
California-blend gasoline, or Carbob, in Los Angeles lost 1 cent to 28.5 cents a gallon above gasoline futures traded on the New York Mercantile Exchange at 1:27 p.m. East Coast time, data compiled by Bloomberg show. That’s the first time the fuel’s premium has narrowed since Jan. 18. Prompt-delivery in Los Angeles gained 1.15 cents to $3.2474 a gallon.
Carbob in San Francisco slipped 0.5 cent to a premium of 6.5 cents a gallon against futures. Prompt-delivery of the fuel rose 1.65 cents to $3.0274 a gallon.
Tesoro Corp.’s 170,000-barrel-a-day Golden Eagle refinery in Northern California will restart the No. 6 boiler next week after finishing repairs that began around Jan. 18, two people with knowledge of the schedule said.
San Francisco Carbob strengthened 0.5 cent to a discount of 22 cents a gallon against the fuel in Los Angeles, the narrowest spread in four days.
California-blend, or CARB, diesel in Los Angeles rose 1.63 cents to a 10.13-cent premium to Nymex heating oil futures. The same fuel in San Francisco climbed 0.25 cent to a premium of 11.25 cents a gallon against futures.
In Portland, low-sulfur diesel strengthened 2 cents to 1 cent a gallon above heating oil futures. Conventional, 84-octane gasoline there gained 0.75 cent to a discount of 3.5 cents to gasoline futures, the highest level in a month.
Tesoro’s 125,000-barrel-a-day Anacortes refinery will shut equipment for a maintenance turnaround scheduled to begin Feb. 28, a person with direct knowledge of the plans said yesterday. Units will be out of service for different periods during the turnaround, with the crude unit expected to be shut the second and third weeks of March, the person said.