San Francisco Gasoline Premium Jumps as Supplies TightenLynn Doan
Spot gasoline in San Francisco gained against futures for a second day on speculation that an unplanned hydrocracker shutdown at Tesoro Corp.’s Golden Eagle refinery tightened supplies in the region.
California-blend gasoline, or Carbob, inventories and blendstocks in Northern California dropped last week to the lowest level since Jan. 4, Alison Roberts, a spokeswoman for the state Energy Commission, said by telephone from Sacramento today. Stockpiles in Southern California, meanwhile, increased for the first time in four weeks, she said.
The 170,000-barrel-a-day Golden Eagle plant shut a hydrocracker, which converts heavy hydrocarbons into lighter fuels such as high-octane gasoline, on Feb. 2 for unplanned repairs and was bringing the unit back to full rates this week, a person with direct knowledge of the work said Feb. 12.
San Francisco Carbob strengthened 7.5 cents to a premium of 6.5 cents a gallon against gasoline futures traded on the New York Mercantile Exchange at 4 p.m. East Coast time, data compiled by Bloomberg show. Prompt delivery jumped 9.29 cents to $3.1995 a gallon, the highest price since Oct. 11.
Tina Barbee, a spokeswoman at Tesoro’s headquarters in San Antonio, said by e-mail yesterday that the Golden Eagle refinery had finished planned maintenance. She declined to specify which units were involved.
The premium for Carbob in Los Angeles gained 0.5 cent against futures to 31.5 cents a gallon. Prompt delivery rose 2.29 cents to $3.4495 a gallon, the highest level since Oct. 9.
BP Plc said yesterday its Carson refinery, the second-largest in California, plans to flare gases through Feb. 25 related to maintenance that began in early January on a fluid catalytic cracker and an alkylation unit.
Valero Energy Corp.’s Wilmington refinery near Los Angeles will keep its catalytic cracker and alkylation unit shut for about another week of repairs, a person familiar with the work said Feb. 13.
The spread between Los Angeles and San Francisco Carbob narrowed 7 cents to 25 cents a gallon, the smallest gap in four days. San Francisco traded a record 32.5 cents a gallon below Los Angeles on Jan. 14.
California-blend, or CARB, diesel in Los Angeles rose 0.25 cent against Nymex heating oil futures to an 11-cent-a-gallon premium. The same fuel in San Francisco slipped 0.5 cent versus futures to a premium of 12 cents a gallon.
In Portland, Oregon, the premium for low-sulfur diesel against futures was unchanged at 4.5 cents a gallon. Conventional, 84-octane gasoline gained 1 cent versus gasoline futures to a premium of 3 cents a gallon.
The spread between Portland 84-octane gasoline and Los Angeles Carbob narrowed 0.5 cent to 28.5 cents a gallon. Portland traded at a record 75.5 cents a gallon below Los Angeles on Oct. 4.
The 3-2-1 refinery crack spread of Alaskan North Slope crude, Carbob in Los Angeles and CARB diesel in Los Angeles widened a fourth day, gaining $1.94 to $28.462 a barrel at 4:03 p.m. New York time, the highest level since Feb. 7.