San Francisco Gasoline Weakens as Oil Refineries Finish Repairs

Spot gasoline in San Francisco declined against futures for the first time in five days as refineries in the western U.S. finished repairs.

Tesoro Corp.’s 170,000-barrel-a-day Golden Eagle plant in Northern California finished unscheduled work, according to an Oct. 11 statement from the San Antonio-based company. An alkylation unit was being restarted Oct. 10, said a person with direct knowledge of operations who asked not to be identified because the information isn’t public.

BP Plc finished planned repairs at the 234,000-barrel-a-day Cherry Point plant in Washington state, a person familiar with work there said Oct. 11.

The premium for California-blend gasoline, or Carbob, in San Francisco narrowed by 2 cents to 17 cents a gallon versus futures traded on the New York Mercantile Exchange, according to data compiled by Bloomberg. Prompt delivery declined 2.13 cents to $2.8368 a gallon.

The same fuel in Los Angeles also weakened 2 cents to a premium of 17 cents a gallon.

The 97,000-barrel-a-day Wilmington section of Tesoro’s Los Angeles-area refinery reported plans to flare gases yesterday through tomorrow, an Oct. 12 notice with the South Coast Air Quality Management District showed. The flaring isn’t related to a breakdown, according to the filing.

The Los Angeles refinery was running normally today, Tina Barbee, a Tesoro spokeswoman in San Antonio, said by e-mail.

Conventional gasoline in Portland, Oregon, a benchmark for the U.S. Pacific Northwest, declined 1 cent versus futures to a discount of 3.5 cents a gallon.

The 3-2-1 crack spread of Alaska North Slope crude, Carbob in Los Angeles and state-grade diesel in Los Angeles narrowed $1.24 a barrel to $15.22. The spread, a rough indication of refining profitability, has broadened 30 percent this month.

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