HOUSTON, July 17 California gasoline
differentials took a sharp dive on Tuesday as a Los Angeles-area
refinery restarted a key unit, traders said.
Los Angeles July-delivery CARBOB gasoline fell by 13 cents
per gallon to finish at a 5-cent discount to August RBOB futures
on the New York Mercantile Exchange on news that Tesoro Corp
had restarted a gasoline-making fluid catalytic cracking
unit at its 103,800 barrel-per-day (bpd) refinery in Wilmington,
Tesoro had said work was ongoing at the plant, but did not
specify which units. Traders said the FCCU was shut last week.
San Francisco Bay market CARBOB was 4 cents under the L.A.
Planned work also was ongoing at Exxon Mobil Corp's
149,500 bpd refinery in Torrance, California, and Phillips 66's
139,000 bpd Wilmington, California, refinery. Traders
said they expected those plants to restart units in the coming
days as well.
L.A. CARB diesel slipped 1.25 cents to 4.00 cents over
August NYMEX heating oil futures, while Bay CARB diesel climbed
a quarter cent per gallon to a bid-offer spread of 2.25/3.25
cents over, traders said.
L.A. jet fuel joined the slide as well, falling by a penny
per gallon to 7.50 cents over.
In the Portland, Oregon, market, gasoline fell 3 cents per
gallon to 15 cents over NYMEX RBOB, more than paring Monday's
Portland diesel also retreated, falling 2 cents to 20 cents
over NYMEX heating oil, paring some of Monday's 6-cent gain.
Both markets gained on Monday on talk of BP Plc
shutting its Olympic Pipeline for maintenance, but sources
familiar with the line's operations said the work would wrap up
this week. The system connects four refineries in the Pacific
A BP spokesman declined comment.