San Francisco Gasoline Surges as Phillips 66 Said to Cut RatesLynn Doan
Spot gasoline in San Francisco advanced to the highest level against futures in six months as Phillips 66’s Rodeo refinery was said to be running at reduced rates during repairs on a hydrocracker.
Phillips 66 cut production at the Northern California plant to repair a pump at the No. 246 hydrocracker that was damaged after overheating April 10, a person familiar with operations at Rodeo said. The work is expected to last about three days, said the person, who asked not to be identified because the information isn’t public.
California-blend gasoline, or Carbob, in San Francisco jumped 6 cents to a premium of 21.5 cents a gallon against futures traded on the New York Mercantile Exchange at 3:55 p.m., the highest level since Oct. 12, according to data compiled by Bloomberg. Prompt-delivery rose 3.08 cents to $3.0168 a gallon.
California-blend, or CARB, diesel in San Francisco surged by 10.5 cents against ultra-low-sulfur diesel futures on the Nymex to a premium of 21 cents a gallon, the largest differential since April 1.
Rich Johnson, a spokesman at Phillips 66’s headquarters in Houston, declined by e-mail to comment on the status of the Rodeo hydrocracker, which converts heavy hydrocarbons into lighter fuels such as high-octane gasoline or high-grade distillates.
Royal Dutch Shell Plc’s Martinez refinery was also said to be performing planned repairs on units, and Chevron Corp.’s 240,000-barrel-a-day Richmond refinery is working to restart its only crude unit this month.
Diesel in Los Angeles slipped 0.37 cent to 3.88 cents a gallon above futures. Carbob in Los Angeles rose 5.25 cents against gasoline futures to a premium of 14.25 cents a gallon, the highest level since February.
BP Plc’s Carson refinery, the second-largest in the state, is performing seasonal maintenance that may cause the 266,000-barrel-a-day plant to flare gases through April 22, a person familiar with operations there said.
The refinery was scheduled to work this month on an isomerization unit, a jet treater, the No. 1 reformer and the mid-barrel unit, a person familiar with the plans said March 28.
In Portland, Oregon, low-sulfur diesel fell 2 cents versus ULSD futures to a premium of 9 cents a gallon. Gasoline there rose 1.5 cents against gasoline futures to a premium of 5.5 cents a gallon.
Tesoro Corp. was returning pumps to service at the 125,000-barrel-a-day Anacortes refinery in Washington on April 10, a notice to state regulators shows. Tina Barbee, a spokeswoman at the company’s headquarters in San Antonio, said by e-mail that the plant is performing planned maintenance.
The 3-2-1 crack spread of Alaska North Slope crude, Carbob in Los Angeles and CARB diesel in Los Angeles gained for the first time in three days, rising $2.44 to $18.65 a barrel at 3:59 p.m. New York time. That’s the highest level in more than a week for the spread, which is a rough indicator of refinery margins.