Los Angeles Jet Fuel Rises to Three-Week High as BP Repairs UnitLynn Doan
Spot jet fuel in Los Angeles gained to the highest level against futures in more than three weeks as BP Plc performed maintenance on a jet fuel hydrotreater at the Carson oil refinery, the second-largest in California.
The 266,000-barrel-a-day Carson plant was scheduled to shut the treater for planned repairs beginning April 1, a person with direct knowledge of the schedule said March 28. The work is expected to last until at least April 8, a person familiar with operations at the refinery said today.
Jet fuel in Los Angeles strengthened 1.25 cents against ultra-low-sulfur diesel futures traded on the New York Mercantile Exchange to a premium of 5.75 cents a gallon at 4:11 p.m. East Coast time, data compiled by Bloomberg show. That’s the highest level for the fuel since March 11.
The Carson refinery plans to flare gases from April 8 through April 15, London-based BP said in a notice to the South Coast Air Quality Management District. The flaring isn’t related to a breakdown, the filing shows.
Jet fuel production in California slipped 0.2 percent in the seven days ended March 29 to 1.66 million barrels, a six-week low, according to data posted on the state Energy Commission’s website late yesterday.
California-blend gasoline, or Carbob, in Los Angeles was unchanged versus gasoline futures traded on the New York Mercantile Exchange at a premium of 5.75 cents a gallon. The same fuel in San Francisco climbed 0.5 cent to a premium of 8.5 cents a gallon.
The premium for Carbob in San Francisco versus the fuel in Los Angeles climbed a second day, gaining 0.5 cent to 2.75 cents a gallon. Last week, San Francisco climbed to the highest level against Los Angeles in seven months.
California-blend, or CARB, diesel in San Francisco fell by 2 cents against ULSD futures to a premium of 12 cents a gallon. The same fuel in Los Angeles dropped 1 cent to 5.5 cents a gallon below futures.
In Portland, Oregon, low-sulfur diesel also weakened, by 0.5 cent to a 14.5-cent premium versus ULSD futures. Gasoline there was unchanged at a discount of 5.5 cents to Nymex futures.
The 3-2-1 crack spread of Alaska North Slope crude, Carbob in Los Angeles and CARB diesel in Los Angeles dropped for the third straight day, losing $1.27 to $18.52 a barrel at 4:26 p.m. New York time, the lowest level in more than a week. The spread, a rough indicator of short-term refinery profit margins, hit a one-year low of $3.86 a barrel in December.