California Gasoline Gains on January Trading, Refinery Repairs
Spot gasoline in Los Angeles advanced for the fourth straight day as trading began for January delivery and on speculation that refiners are buying fuel before shutting units for maintenance next month.
BP Plc (BP/), Chevron Corp. (CVX) and Tesoro Corp. (TSO) plan to shut production units at their Southern California refineries next month for planned maintenance turnarounds, according to people familiar with the work schedules. The plants together make about a third of California’s refining capacity, according to data compiled by Bloomberg.
California-blend gasoline, or Carbob, supplies rose for the third straight week in the seven days ended Dec. 14, gaining 273,000 barrels to 6.54 million, the state Energy Commission said. Output of the fuel, meanwhile, dropped 9.1 percent to 6.19 million barrels, the lowest level since Nov. 2, the agency said.
Carbob in Los Angeles jumped 9.5 cents to a premium of 1 cent a gallon against gasoline futures traded on the New York Mercantile Exchange, data compiled by Bloomberg show. The contract, which rolled into January today, is being traded against February Nymex gasoline futures, which settled 1.9 cents below January futures.
Carbob in San Francisco, which also rolled into January, narrowed its discount to futures by 16 cents to 1 cent a gallon.
The premium for California-grade, or CARB, diesel in Los Angeles widened 0.25 cent to 2 cents a gallon versus Nymex heating oil futures. The fuel in San Francisco widened its discount by 3.25 cents to 5.25 cents a gallon.
In Portland, Oregon, conventional 84 sub-octane gasoline to be blended with ethanol strengthened by 3.5 cents to a 6.5-cent discount to gasoline futures. Low-sulfur diesel in Portland’s strengthened 1.5 cents to 1.5 cents a gallon above heating oil futures.
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