Los Angeles Diesel Gains to Two-Week High as Refineries FlareLynn Doan
California-blend diesel in Los Angeles advanced to the highest level against futures in two weeks after Tesoro Corp. and Phillips 66 reported flaring at their refineries in Southern California.
Tesoro’s 266,000-barrel-a-day Carson plant reported flaring after a compressor trip yesterday, a notice to state regulators shows. Phillips 66’s 139,000-barrel-a-day Los Angeles refinery also reported flaring in the Carson section of the complex, a separate notice showed.
California-grade, or CARB, diesel in Los Angeles strengthened 2.5 cents to a premium of 3.75 cents a gallon against ultra-low-sulfur diesel futures traded on the New York Mercantile Exchange at 3:32 p.m., data compiled by Bloomberg show. That’s the highest level for the fuel since July 15. Prompt-delivery gained 1.5 cents to $3.0465 a gallon.
CARB diesel in San Francisco jumped 2.75 cents to 4 cents a gallon above futures, also a two-week high.
The Carson section of Phillips 66’s Los Angeles refinery serves as the “front end,” initially processing the crude oil, according to the company’s website. Rich Johnson, a spokesman at the company’s headquarters in Houston, said by e-mail yesterday that the plant isn’t performing planned work.
Tina Barbee, a spokeswoman at Tesoro headquarters in San Antonio, didn’t immediately respond to an e-mailed request for comment.
Low-sulfur diesel in Portland, Oregon, a benchmark for the U.S. Pacific Northwest, climbed 0.75 cent against ULSD futures to a premium of 2.5 cents, the highest since July 9.
Conventional, 87-octane gasoline in Portland gained 4 cents against gasoline futures on the Nymex to a premium of 9.5 cents a gallon, while California-blend gasoline, or Carbob, in Los Angeles slid 4.5 cents to 4.5 cents a gallon below futures.
Retail gasoline in California slipped 0.5 cent to $3.994 a gallon, Heathrow, Florida-based AAA, the nation’s largest motoring organization, said today on its website.
The 3-2-1 crack spread of Alaska North Slope crude, Carbob in Los Angeles and CARB diesel in Los Angeles widened 53 cents to $16.21 a barrel at 4 p.m. New York time.