HOUSTON, Oct 3 (Reuters) – Gasoline climbed to a new record
level on Wednesday in the Los Angeles spot market as supply
tightened across California, the nation’s largest gasoline
market, due to the shutdown of major refining units, traders
said.
October-delivery CARBOB gasoline sold in L.A. for as high as
$1.45 a gallon on top of the November contract for RBOB gasoline
on the New York Mercantile Exchange, a gain of 20 cents from
Tuesday.
CARBOB in the San Francisco Bay market was discounted by 5
cents from the L.A. price, which was unexpected given the
on-going shutdown of a crude distillation unit at Chevron
Corp.’s 245,000 barrel per day (bpd) Richmond,
California, refinery.
Two days ago, Bay CARBOB sold at a 7-cent premium to L.A.
L.A. CARBOB for delivery in the second-half of October sold
at 95 cents a gallon on top of November RBOB.
Tesoro Corp is also performing maintenance at its
166,000 bpd Bay-area refinery in Martinez, California.
Los Angeles prices began climbing on Monday when a power
outage hit Exxon Mobil Corp.’s 149,500 bpd Torrance,
California, refinery suddenly cutting supply, which was already
tight due to the Chevron shutdown and Tesoro maintenance.
Exxon said on Tuesday it expected the refinery’s safety
flare could be in operation through Oct. 9, indicating to the
market it may take up to eight days to restore refinery
operations. Refineries operate their safety flares when
production units cannot normally process hydrocarbon feedstocks.
November-delivery CARBOB in L.A. sold at a 40-cent-per
gallon over the December contract for NYMEX RBOB.
As retail supply tightened, Tesoro stopped selling gasoline
on Monday to Southern California retailers who don’t carry the
company’s brand, a trader said.
Tesoro declined to discuss wholesale sales in California or
the status of production at its 103,800 bpd Los Angeles-area
refinery in Wilmington, California.
Gasoline in the Portland, Oregon market was steady at 55
cents over November NYMEX RBOB.
Diesels moved up more slowly. CARB diesel in L.A. was
stronger by 1.5 cents at 17 cents a gallon over November NYMEX
heating oil. Bay CARB diesel was offered at 15 cents a gallon
over NYMEX heating oil.
EPA diesel in L.A. was offered at 16 cents over November
NYMEX heating oil.
The California Air Resources Board mandates CARB diesel be
sold in California’s cities to reduce pollution. EPA diesel
refers to diesel mandated for sale in the United States by the
U.S. Environmental Protection Agency.
L.A. jet fuel rose 0.5 cent a gallon to 11 cents a gallon
over November NYMEX heating oil.
Portland diesel rose 3 cents a gallon to 7 cents a gallon
over November NYMEX heating oil.
(Reporting By Erwin Seba; editing by Miral Fahmy)
