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US WCoast Products - Gasoline gains as contract nears end

HOUSTON, April 19 | Thu Apr 19, 2012 5:52pm EDT

HOUSTON, April 19 (Reuters) - Gasoline gained in the Los Angeles spot market on Thursday as the April contract neared its end early next week, traders said.

April-delivery CARBOB gasoline finished in L.A. with an 0.5-cent gain on Thursday at 3.5 cents a gallon over May NYMEX RBOB gasoline. CARBOB was 2 cents stronger in the San Francicso Bay market.

May-delivery CARBOB gasoline retreated 1.5 cents to finish at 5.5 cents a gallon over June NYMEX RBOB, as traders gained greater clarity on maintenance underway at refineries along the West Coast.

ConocoPhillips said maintenance was not being performed at its 120,200 barrel per day (bpd) Rodeo, California, refinery and 139,000 bpd Los Angeles refinery in Wilmington, California, contrary to some published reports.

Tesoro Corp earlier this week completed maintenance at its 97,000 bpd Los Angeles-area refinery, also in the L.A. suburb of Wilmington, and 166,000 bpd San Francisco Bay-area refinery in Martinez, California.

Hourly workers at Tesoro's Wilmington refinery represented by the United Steelworkers union (USW) voted Tuesday and Wednesday to authorize their leaders to call a strike after the current contract expires on April 30, if an agreement has not been reached with management.

Workers at Tesoro's refineries in Anacortes, Washington, Manadan, North Dakota, and Martinez had previously voted to authorize a strike.

If workers at all four refineries walk out at the same time, two-thirds of Tesoro's combined refining capacity of 666,000 bpd, all located in the western United States, could be impacted.

Tesoro has said it hopes to reach agreement with all of the USW-represented refineries for a new contract, but was prepared to keep operating with temporary replacement workers.

An overhaul continues at ConocoPhillips' 100,000 bpd Ferndale, Washington, refinery and BP Plc continues to repair its 225,000 bpd Cherry Point, Washington, refinery following a February fire.

Gasoline in the Portland, Oregon, market was unchanged at a 6-cent premium over NYMEX RBOB gasoline.

May-delivery CARB diesel sold at 7 cents in L.A. on top of June NYMEX heating oil. CARB diesel is designed by California pollution regulators to reduce pollution in California's major metropolitan areas.

EPA-grade diesel, used outside of California's major cities, sold in both the April and May periods at a 4-cent premium in the L.A. market.

April jet fuel sold in Los Angeles at 6.5 cents a gallon over NYMEX heating oil.

Diesel in Portland was down 1.5 cents at 22-cent premium on NYMEX heating oil.

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